Distribution of net profits mandates minimum transfers to reserves and education funds and limits permissible uses of remaining surplus. A multi State co operative society must allocate portions of annual net profits to specified reserves and funds before using the balance: mandatory transfers include a minimum amount to a reserve fund, a prescribed credit to a co operative education fund, and a minimum transfer to a reserve for unforeseen losses. The remaining profits, subject to conditions and bye laws, may be used for dividend within prescribed limits, constitution of special or education funds, capped donations for co operative development or charitable purposes, and ex gratia employee payments.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Distribution of net profits mandates minimum transfers to reserves and education funds and limits permissible uses of remaining surplus.
A multi State co operative society must allocate portions of annual net profits to specified reserves and funds before using the balance: mandatory transfers include a minimum amount to a reserve fund, a prescribed credit to a co operative education fund, and a minimum transfer to a reserve for unforeseen losses. The remaining profits, subject to conditions and bye laws, may be used for dividend within prescribed limits, constitution of special or education funds, capped donations for co operative development or charitable purposes, and ex gratia employee payments.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.
TaxTMI 
of 
Join Channel
TaxTMI 
