In a written reply in the Rajya Sabha, Union Home and Cooperation Minister Amit Shah informed that the National Cooperative Exports Limited (NCEL) distributed dividends to its members at the rate of 20 percent on their paid-up share capital for the financial year 2023-24.
NCEL was established under the Multi-State Cooperative Societies (MSCS) Act, 2002 as a national-level multi-state cooperative export society to boost exports from the cooperative sector. It functions as an umbrella organization with the aim to channel cooperative products into international markets.
As per its byelaws, particularly Chapter 5, Clause 55(2)(a), the General Body, on the Board’s recommendation, can declare a dividend of up to 20 percent, subject to net profit availability. In the event of a shortfall, a lesser rate may be approved by the General Body.
Further, Clause 58 outlines that dividends are paid to members registered as shareholders on the last day of the cooperative year. Unclaimed dividends for three years may be forfeited and transferred to the Reserve Fund. Dividends are distributed proportionately based on the amount and duration of shareholding.
