Section 1
[(b) credit annually one per cent. of net profit to co-operative education fund to be maintained by the Central Government in such manner as may be prescribed and the proceeds from such fund shall be used for co -operative education and training through the National Co-operative Union of India and any other agency in such manner as may be determined by the Central Government;]
1 [(b) credit annually one per cent. of net profit to co-operative education fund to be maintained by the Central Government in such manner as may be prescribed and the proceeds from such fund shall be used for co -operative education and training through the National Co-operative Union of India and any other agency in such manner as may be determined by the Central Government;]
(c) transfer an amount not less than ten per cent . to a reserve fund for meeting unforeseen losses.
(2) Subject to such conditions as may be prescribed, the balance of the net profits may be utilised for all or any of the following purposes, namely:—
(a) payment of dividend to the members on their paid-up share capital at a rate not exceeding the prescribed limit;
(b) constitution of, or contribution to, such special funds including education funds, as may be specified in the bye-laws;
(c) donation of amounts not exceeding five per cent. of the net profits for any purpose connected with the development of co-operative movement or charitable purpose as defined in section 2 of the Charitable Endowments Act, 1890 (6 of 1890);
(d) payment of ex gratia amount to employees of the multi-State co-operative society to the extent and in the manner specified in the bye-laws.