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Section 63: Reserve Fund

Co-operatives Act · PART IX: PROPERTY AND FUNDS OF SOCIETY

consolidated text (as at 2018, amended since). juris shows the text as it was consolidated; it does not confirm that this is the law in force today.

63. Reserve Fund (1) Every society shall maintain a Reserve Fund into which shall be paid at least 5 per cent of its surplus. (2) Where the Minister is satisfied that a society has accumulated adequate funds in its Reserve Fund, the Minister may, on an application made by the society, authorise the society to contribute a lesser percentage of its surplus to the Reserve Fund than the percentage referred to in subsection (1). (3) Subject to subsection (1), a society may maintain special reserve funds into which shall be paid such part of its surplus as may be provided in the rules or as the general meeting may approve. (4) No society shall pay any dividend out of its Reserve Fund. (5) A society may, from its Reserve Fund, issue bonus shares to its members.

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