(1) A registered society shall have power to spend out of its funds such sums as it thinks fit on purposes authorized by this Act or its by-laws.
(2) No part of the funds of a registered society (save those funds earmarked specifically for the purpose of making provision for a dependant of a deceased or disabled member) shall be divided by way of bonus or dividend or otherwise among its members:
Provided that payment may be made from such earmarked funds to a dependant of a deceased or disabled member of a registered society, subject to such limits, if any, prescribed by the by-laws.
Explanation—For the purpose of this sub-section—
(i) the expression " dependant" means any of the following relatives of a deceased or disabled member, namely, a wife, husband, parent, child, minor brother, unmarried sister and a deceased son's widow and child, and where no parent of the deceased or disabled member is alive, a paternal grand-parent;
(ii) the expression " disabled member" means a member who, on account of injury, disease, or congenital deformity is substantially handicapped in obtaining, or keeping employment, or in undertaking work on his own account, of a kind which apart from that injury, disease or deformity would be suited to his age, experience and qualifications and the expression " disease" in this clause shall be construed as including a physical or mental condition arising from imperfect development of any organ.
(3) Save as provided in sub-section (2), no payment shall be made out of the funds of a registered society to the president or any other officer of the society by way of honorarium for any service rendered by him to the society.