This exploratory study identifed the major sources of cooperative funds and their uses as well as how their net profts were distributed after the necessary statutory deductions had been made. A total of 274 co-operatives in Peninsular Malaysia participated in the study. The profle of the cooperatives were identifed from the feedback obtained through questionnaires to the cooperatives, while data on the sources and uses of funds as well as the distribution of net profts were sourced from the annual reports of the cooperatives, from 2003 to 2005. The fndings indicated that 83% of the funds of co-operatives were from internal sources, specifcally from members’ share capital as compared to only 17% from external fnancing by fnancial institutions. Furthermore, 57% of the cooperatives’ funds were utilised to fnance investment in assets, the most popular activity as compared to only 29% being used to undertake economic activities. In terms of the distribution of net profts, 60% of the cooperatives gave dividends on members’ share capital, 52% of the cooperatives paid honoraria to board members and 50% of the cooperatives set up funds for their members’ beneft.
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