State Act

The Bihar Co-operative Societies Act, 1935

21. Restrictions on division of funds. – No part of the funds of a registered society shall be divided by law or dividend or otherwise among its members: Provided that after the amount required by sub-section (6) of section 18 or by any rule has been carried to the reserve fund, the balance of the net profits, if any, together with any available profits of past years, may be distributed as dividend among members or paid as bonus or remuneration to a member for any specific service rendered to the society or used for the common benefit or members to such extent and under such conditions as may be prescribed by the rules or bye-law.