Members allocate surpluses for any or all of the following purposes: developing the cooperative, possibly by setting up reserves, part of which at least would be indivisible ; benefiting members in proportion to their transactions with the cooperative ; and supporting other activities approved by the membership.

Members allocate surpluses for any or all of the following purposes: developing their co-operative, possibly by setting up reserves, part of which at least would be indivisible ; benefiting members in proportion to their transactions with the co-operative ; and supporting other activities approved by the membership .” This principle, in turn, can be broken down into a number of constituent parts.

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