No part of the funds of a registered society shall be divided by way of bonus or dividend or otherwise among its members:
Provided that after at least one-fourth of the net profits in any year have been carried to a reserve fund, payments from the remainder of such profits and from any profits of past years available for distribution may be made among the members to such extent and under such conditions as may be prescribed by the rules or by-laws:
Provided also that in the case of a society with unlimited liability no distribution of profits shall be made without the general or special order of the State Government in this behalf.
Co Operative Societies Act 1912
Section 31 of Cooperative Societies Act - Restrictions on other transactions with non-members
Section 32 of Cooperative Societies Act - Investment of funds
Section 33 of Cooperative Societies Act - Funds not to be divided by way of profit
Section 34 of Cooperative Societies Act - Contribution to charitable purpose
Section 35 of Cooperative Societies Act - Inquiry by Registrar
Section 36 of Cooperative Societies Act - Inspection of books of indebted society
Section 37 of Cooperative Societies Act - Costs of inquiry
Section 38 of Cooperative Societies Act - Recovery of costs
Section 39 of Cooperative Societies Act - Dissolution
Section 40 of Cooperative Societies Act- Cancellation of registration of society