Short Answer

No, the surplus shown in the accounts of a cooperative society is not distributed among its members by default.

Detailed Explanation

Section 67 of the Gujarat Cooperative Societies Act, 1961 states that the surplus arising from the working of a cooperative society shall be dealt with in the manner prescribed by the rules. Rule 127 of the Gujarat Cooperative Societies Rules, 1965 further elaborates on this by stating that the surplus may be utilized for various purposes as specified in the rules, such as the creation of reserves, welfare funds, or any other purpose beneficial to the society.

In practice, when a cooperative society generates a surplus, the management committee decides on the allocation of the surplus based on the needs and objectives of the society. The surplus is typically utilized for the development of the society, maintenance of infrastructure, welfare activities for members, or any other purposes as deemed fit by the committee.

For example, if a cooperative housing society shows a surplus in its accounts after collecting maintenance fees from members, the management committee may decide to allocate the surplus towards repair and maintenance of common areas, improvement of amenities, or building a contingency fund for future expenses.

In another scenario, a cooperative credit society may utilize the surplus for providing loans at lower interest rates to its members, investing in new technology for better services, or expanding its operations to benefit more members.

Overall, the distribution of surplus in a cooperative society is governed by the Act and Rules, ensuring that the funds are utilized for the collective benefit and sustainable growth of the society.

References

• Section 67 of the Gujarat Cooperative Societies Act, 1961: Official PDF

• Rule 127 of the Gujarat Cooperative Societies Rules, 1965: Official PDF