Singapore legislation
Section 15A
Section 15A
Reserve Fund
(1)
There is to be a fund called the Reserve Fund.
(2)
Any credit balance at the date immediately before 31 December 2014 in the reserve fund mentioned in section 14(4) of this Act in force immediately before 31 December 2014 is transferred to the Reserve Fund, and constitutes its credit balance on 31 December 2014.
(3)
The Reserve Fund is to be under the control of the Board and may be dealt with by the Board in such manner as may be prescribed.
(4)
The following moneys may, with the Board’s sanction, be transferred and credited to the Reserve Fund:
such capital gains from the disposal of such investment or class or description of investments made on account of the Common Fund as the Board may determine to be reasonable —
to meet any possible future shortfall in the Common Fund arising from losses on any investment made on account of the Common Fund; and
to supplement the distributable sum for a basis period mentioned in section 12A in the event that —
losses are incurred during the basis period on any investment made on account of the Common Fund; or
there is no income earned during the basis period from investments made on account of the Common Fund;
such amount of the income on such investment of moneys in the Common Fund as the Board may determine, for the purpose of meeting any known or expected shortfall in the Common Fund arising from the disposal of that investment.