Cap. 442 Art. 90Reserve fund.

(1) Every society shall maintain a reserve fund, and such fund shall be used exclusively to cover losses incurred by the society.

(2) The reserve fund shall be kept in the form of liquid assets.

(3) Every society shall transfer into the reserve fund at least twenty per cent of its surplus at the end of each accounting period: Provided that the requirement of this subarticle shall not apply at the end of any accounting period in which the reserve fund is equal to the total of the paid-up share capital and of twenty per cent of the borrowed capital of the society as shown in the audited and approved balance sheet of the preceding financial period.