12. The members of the union, at the annual meeting, after considering the recommendations of the board of directors and in accordance with the statement of the last fiscal year, shall divide the amount of the annual operating surplus by first allocating it to the establishment of a general reserve in accordance with section 13. The balance, if any, shall be allocated
(a) to the payment of interest on paid-up shares;
(b) to the payment of rebates to depositers or borrowers; or
(c) to the establishment of the surplus account contemplated in section 14.