52. Bonus and Dividend Equalization Fund
(1) A society may create out of its net profits a fund to be called the Bonus Equalization Fund 2[for payment of bonus to persons other than its paid employees 3[who are not its members].
(2) Except otherwise specifically authorised by the Registrar, 2[the fund] so created shall be utilised in accordance with the provisions of the bye-laws of the society only 4[for payment of such bonus].
1. Subs by G.N. of 16-10-1987
2. Subs by G.N. of 8-11-1972
3. Added by G.N. of 21-9-1972
4. Subs. By G.N. of 7-11-1990
1[(3) A society may create the Dividend Equalization Fund and credit to it a sum need exceeding 2 percent of the paid-up share capital in any year, until the total amount in such Fund amounts to 9 percent of the paid-up share capital. The society may draw upon this fund in any year only when it is unable to maintain a uniform rate of dividend it has been paying during the last preceding five years or more.]
(4) No society shall declare a dividend at a rate exceeding that recommended by its committee.