Apportionment of surplus

(1) After the allocations to the Reserve Fund and the Education Fund have been made in accordance with section 51, the directors shall pass and present to the annual meeting for confirmation, a special resolution concerning the apportionment of the remaining surplus from the yearly business of the credit union, which resolution may provide that– (a) a dividend of a specified amount be paid to the (b) there be set aside in general reserve a specified amount for emergencies or estimated losses or special expenditures required to achieve the objects of the credit union; (c) a specified amount of retained earnings or undistributed surplus be set aside to enhance the capital base of the credit union; (d) a rebate be paid to the members of the credit union in proportion to the amount of loan business done by each member with the credit (e) a specific amount of retained earnings or undistributed surplus may be set aside for charitable or other purposes. (2) A credit union may, authorize its directors to pay to the members from time to time such interim dividends as appear to the directors to be justified by the profits of the credit union and provide further that the payment of such interim dividends shall be subject to ratification by the members in a general meeting. (3) In no case shall the dividend declared by a credit union exceed eight per cent. Credit Unions Act 49