Malaysia legislation
Section 57
Section 57
(2)
Subject to subsection (7), every registered society shall, out of its audited net profits for the preceding financial year, pay such sum as may be determined by the Minister to—
(a)
any co-operative educational institution; or
(b)
any secondary or tertiary society which the Minister has declared to be a body representing the co-operative movement at national and international level.
or to both, or to the Co-operative Education Trust Fund established under the regulations for the furtherance of co-operative principles.
(3)
No secondary or tertiary society shall be declared under paragraph (2)(b) to be a body representing the co-operative movement at national and international level unless—
(a)
the objects of such society include the promotion of co-operative principles and the facilitation of the operations of registered societies; and
(b)
the by-laws of such society provide for—
(i)
the affiliation of all registered societies without any restrictions or the payment of any fee except entrance fees; and
(ii)
the appointment to its Board, by the Minister, of at least one representative from his ministry and of one representative from the Ministry of Finance.
(4)
There may be deducted from the sum mentioned in subsection (1) any sum paid pursuant to subsection (2).
(5)
Subject to subsection (7), a registered society may, after the payments specified in subsections (1) and (2), utilise the audited net profits for the preceding financial year for all or any of the following purposes:
(a)
the payment of rebate on patronage and return on deposits;
(b)
the payment of dividend, which shall not in any case exceed such maximum rate as may be prescribed in the regulations, on the shares and subscriptions of members of the registered society;
(c)
the payment of honoraria to members of the Board of the registered society, which shall not in any case exceed such sum as may be approved by the Registrar-General;
(d)
the payment for any charitable purposes or for any other purpose of a sum not exceeding ten per centum of the audited net profits.
(6)
No rebate on patronage, return on deposits or dividend on shares and subscriptions shall be payable to members of a registered society and no honoraria shall be payable to members of the Board of a registered society except out of the audited net profits of that registered society.
(7)
No registered society, shall utilise its net profits for any purpose under subsection (2) or (5) unless and until all its accumulated losses, if any, have been completely written off.
(8)
Notwithstanding subsection (7), a registered society whose accumulated losses have not been completely written off may, with the approval of the Registrar-General, utilise its audited net profits for the preceding financial year for the payment of dividends which shall not in any case exceed five per centum of the audited net profits.