357Distribution of surplus or reserves to members

#### 357 Distribution of surplus or reserves to members 357 Distribution of surplus or reserves to members > > (1) A distributing co-operative may apply a part of the surplus arising in a year from the business of the co-operative or a part of the reserves of the co-operative by— > > > > > (a) distribution to members as a rebate in proportion to— > > > > > > > (i) the value of business done by each member with the co-operative; or > > > > > > > (ii) profits earned by the co-operative on business done by each member with the co-operative; or > > > > > (b) the issue to members of bonus shares in proportion to— > > > > > > > (i) the value of business done by each member with the co-operative; or > > > > > > > (ii) profits earned by the co-operative on business done by each member with the co-operative; or > > > > > > > (iii) shares held by each member; or > > > > > (c) the issue to members of a limited dividend for shares held by each member. > > > (2) The amount of a rebate payable to a member under subsection (1) (a) may be applied— > > > > > (a) in payment for the issue to the member of bonus shares, with the consent of the member; or > > > > > (b) as a loan to the co-operative— > > > > > > > (i) with the consent of the member; or > > > > > > > (ii) if the rules of the co-operative authorise the amount of a rebate payable to a member under subsection (1) (a) to be applied as a loan to the co-operative. > > > (3) The amount of a dividend payable to a member under subsection (1) (c) may be applied— > > > > > (a) in payment for the issue to the member of bonus shares, with the consent of the member; or > > > > > (b) as a loan to the co-operative— > > > > > > > (i) with the consent of the member; or > > > > > > > (ii) if the rules of the co-operative authorise the amount of a dividend payable to a member under subsection (1) (c) to be applied as a loan to the co-operative. > > > (4) A loan to the co-operative authorised by the rules (as referred to in subsection (2) (b) (ii) or (3) (b) (ii)) is repayable at call and must bear interest at a rate not lower than the rate prescribed by the National Regulations. > > > (5) In this section— > > > > limited dividend means a dividend that is not more than the amount prescribed by the National Regulations.