State Act

The Punjab Self-Supporting Co-operative Societies Act, 2006

19. (1) The surplus, if any, out of the business of a self-supporting co-operative society transacted during a financial year, may be used for any of the following purposes, namely :— (a) to deposit in a deficit cover fund, a business risk fund or any other fund created by a self-supporting co-operative society under its bye-laws for the benefit and development of such society : Provided that not less than twenty-five per cent of the net surplus of a self-supporting co-operative society in a financial year, shall be deposited in such funds ; (b) to distribute as a surplus refund among its members ; (c) to develop the business of the self-supporting co-operative society ; (d) to provide services to the members of a self-supporting co-operative societies ; and (e) to write off bad debts and losses of the self-supporting co-operative society. (2) A detailed report showing the purposes for which the surplus funds have been used under sub-section (1), shall be placed before the annual general meeting of the general body of a self-supporting co-operative society.