- No part of the funds of a registered society, except net profits as declared by the Registrar for the purpose's of this Act, shall be divided by way of bonus or dividend or otherwise among its members:

Provided that payment may be made to a member for work done by him as clerk in such class or category of societies and on such scale as may be prescribed:

Provided further that payment of rebate on patronage may be made to members with the prior sanction of the Registrar:

Provided also that in the case of any registered society with accumulated losses, but working on current profit, payment of honorarium may be made to the members of the board including the president and the vice-president at such rates and subject to such conditions as may be prescribed, but the aggregate of the honorarium so paid shall not exceed five per cent of the current profit.

Explanation. - For the purpose of this section, "current profit " means the notional net profit of the registered society for the current year without taking into account the accumulated loss at the end of the previous year.