In which section of the 1925 Act is the distribution of profits (profit of distribution) mentioned?
- (41
- 40
- 37
- 36
Explanation
Distribution of profits is regulated under Section 40 of the Cooperative Societies Act, 1925.
Restriction on distribution of profits.–
- Subject to the provisions of section 38, the balance of the profits of a society after making the prescribed provisions for the reserve fund may,
- Together with any available profits of past years, be distributed among its members,
- And in the case of consumers’ and producers’ societies, also among persons who are not members,
- To the extent and under the conditions prescribed by the rules or by the by-laws of such societies
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