358Application of surplus to other persons

358 Application of surplus to other persons

358 Application of surplus to other persons

(1) Part of the surplus arising in a year from the business of a distributing co-operative may be credited to a person who is not a member, but is qualified to be a member, by way of rebate in proportion to the value of business done by the person with the co-operative or to the profit earned by the co-operative, if—

(a) the person was a member when the business was done and the membership has lapsed; or

(b) the person has applied for membership after the business was done.

(2) Nothing in this section precludes the payment of a bonus to an employee under the terms of his or her employment.