Commentary on Sections Section 6: Application of surplus funds towards social, cultural or charitable purposes
This section amends Article 36(5) of the 1985 Order. That Article currently imposes a requirement that a dividend of not less than 3% is paid on all paid-up shares before a credit union can apply any of its surplus funds for social, cultural or charitable purposes (up to a maximum of 10%). The section removes the minimum amount of the dividend, although it still requires that a dividend be paid to members before surplus funds are applied to those purposes.