(1)

No part of the funds or assets of a society, other than the dividend equalisation fund, if any, and the net profits thereof, shall be paid by way of rebate or dividend or otherwise distributed, to its members :

Provided that in the case of a member, who is also a salaried servant of the society payment on such scale as may be laid down by the bye-laws may be made to him for work done as such servant.

(2)

No honorarium shall be paid out of the funds and assets of a society other than the net profits and such honorarium shall not exceed the prescribed limit.