(1) In the liquidation of a registered society the funds, including the Reserve Fund, shall be applied as follows—
(a) firstly to the costs of liquidation;
(b) secondly to the discharge of the liabilities of the society;
(c) thirdly to the payment of share capital;
(d) fourthly, if the by-laws of the society permit, to the payment of a dividend at a rate not exceeding 10% per annum for any period during which no distribution of profits has been made.
(2) Any surplus remaining after the application of the funds to the purposes specified in subsection (1) may, at the discretion of the Registrar, be used for any cooperative purpose he or she considers fit.
(3) Where the liquidation is closed under subsection (1), the Registrar shall—
(a) issue directions with respect to the custody or disposal of the documents and records of the society; and
(b) discharge the liquidator.
(4) Where the Registrar discharges a liquidator under subsection (3), he or she shall issue a certificate of dissolution in the prescribed manner.
(5) The society ceases to exist on the date shown in the certificate of dissolution.