law: Multi-State Cooperative Societies Act, 1984 
  61. Disposal of net
  
  profits.- 
  
  1.     
  
    A
  
  multi-State cooperative society shall out of its net profits in any year -
  a.      transfer an amount
  
  not less than twenty-five per cent to the reserve fund, and
  b.     credit such portion,
  
  as may be prescribed, to the cooperative education fund maintained by the
  
  National Cooperative Union of India Limited, New Delhi.
  1.     
  
  
  2.     
  
    Subject
  
  to such conditions as may be prescribed, the balance of the net profits may be
  
  utilized for all or any of the following purposes, namely;
  a.      payment of dividend
  
  to 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 amount
  
  not exceeding five per cent of the net profits for any purpose as defined in
  
  section 2 of the Charitable Endowments Act, 1890;
  d.     payment of ex gratia
  
  amount to employees of the multi-State cooperative society to the extent and in
  
  the manner specified in the bye-laws.
  1.     
  
  
  2.     
  
  
  3.     
  
    The
  
  funds of a multi-State cooperative society shall not be utilised for any
  
  political purpose.