law: Co-Operative Societies Act 2008 
  123.
  
  Dividend or bonus
  1.      Subject to this
  
  section and sections 119 and 120, any surplus may be distributed by way of
  
  dividend or bonus amongst its members in proportion to their patronage with the
  
  society at such rate as may be prescribed.
  2.      No registered society
  
  shall—
  a.     
  
    pay
  
  a dividend or bonus or distribute any part of its accumulated funds before the
  
  balance sheet has been certified by an auditor approved or appointed by the
  
  Registrar; or
  b.    
  
    pay
  
  a dividend or make any payment on account out of profits until the Reserve Fund
  
  has reached a proportion of not less than 10 percent of the total liabilities
  
  of the society.
  1.      
  2.      
  3.      A bonus based on
  
  wages or on the value of the products of a member or a bonus or rebate on
  
  patronage calculated in proportion to the amount of the business done by each
  
  member with the registered society may be distributed periodically to the
  
  members from surplus funds after the deduction of all expenditure and after
  
  making provision for bad and doubtful debts and making allocation for the Reserve
  
  Fund.