(1) A society may create out of its net profits a Fund to be called “the Bonus Equalisation Fund” for payment of bonus to persons other than its paid employees who are not its members.
(2) except otherwise specifically authorised by the Registrar the Fund so created shall be utilised in accordance with the provision of the bye-laws of the society only for payment of such bonus.
(3) A society may create the Dividend Equalisation Fund and credit to it a sum not exceeding two percent of the paid up share Capital in any year until the total amount in such fund amounts to nine percent of the paid up share capital. The society may draw upon this Fund in any year only when it is unable to maintain a uniform rate of dividend it has been paying during the last preceding five years or more.
(4) No society shall declare a dividend at a rate exceeding that recommended by its committee.
(5) a Primary Agriculture Credit Society shall pay a dividend to its members in accordance with the guide lines laid down by the Registrar in consultation with the National Bank.
53. Every society which pays a dividend to its members at a rate of 4 percent or more, shall contribute towards the educational fund of the State Federal Society, notified by the State Government, at the following rates, namely :-
(a) If the rate of dividend for 1percent of the net profits of the year.
any year is 4 percent.
(b) If the rate of dividend for 11/4percent of the net profits of the year.
any year is more than 4 percent, but not more than 5 percent.
Rule 51* Subsection (A) are inserted by TCS (Fourth Amendment) Act 2011.
Rule 52* Subsection (5) are inserted by TCS (Fourth Amendment) Act 2011.
Bonus and dividend equalisation Fund.
Rate of contribution to educational fund of the State federal society.
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(c) If the rate of dividend for 11/2percent of the net profits of the year.
any year is more than 5 percent but not more than 6 percent.
(d) If the rate of dividend is 13/4percent of the net profits of the year.
more than 6 percent, but not more than 7 percent.
(e) If the rate of dividend is 2percent of the net profits of the year.
more than 7 percent, but not more than 8 percent.
(f) If the rate of dividend is 21/4percent of the net profits of the year.
more than 8 percent.
Provided that, if the net profits of the society for any year do not exceed Rs. 200, the society shall not be required to contribute anything towards the said educational fund for that year.
Provided further that the provisions of this Rule shall not apply to a, Cooperative Credit Structure Society.