Bye-Laws Chapter XIII to XIV


After providing for the interest upon any loans and deposits and after making such other deductions as required under Section 65(1) and 66 of the MCS Act 1960 and Rule 49A of MC5 Rules 1961 Twenty five percent of the net profit of all the business carried on by or on account of the society shall be placed at the credit of the Reserve Fund of the society.

The remaining 75 percent of the net profit of the society shall be utilised as provided under Rule 50,51,52,53.

To pay dividend not exceeding * 15 percent per annum, upon the paid up share capital at such rate as the committee may recommend and the annual general body meeting may approve. The dividend on shares shall be paid to the registered holders of such shares according to the books of the society as on the last day of the preceding co-operative year.

To pay honorarium to office-bearers of the society not exceeding 15 percent of the net profit to reward them for the sacrifice of their valuable time for the working of the society. However, the office bearer may take such amount of annual limit 15% or Rs.2000/-, whichever is less.

To allocate to a common welfare fund, such part of the profit as the annual meeting of the general body may determine to be utilised in furtherance of the objects specified in the bye-law No. 5(d).

The balance, if any shall be carried forward or dealt within such manner as the annual meeting of the general body on the recommendations of the Committee, may determine.



Subject to the bye-law No. 151, the society may write off any loan and interest thereon. Society's charges due from the members, the expenses incurred on recovery thereof and the accumulated losses which are certified as irrecoverable by the Statutory Auditor.


The amounts mentioned in the bye-law no. 150 shall not be written off unless:

the meeting of the general body of the society has given due sanction for writing off the amounts.

the approval of the financial agency to the writing on the amount if the society is indebted to it, is obtained.

the approval of the-Registering Authority is obtained. Provided that, if the society is affiliated to the District Central Co-operative Bank or any other financing agency but is not indebted to it, the permission of the Bank or the financing agency is not necessary.

Provided further that, if the society is classified as A or B at the last Audit, no such permission of the Bank or the financing agency or the Registering Authority is necessary, if there is sufficient balance in the bad debt fund, specially created for the purpose to cover the amount proposed to be written off as per Section 67 as amended in 1994.