Singapore legislation
Section 6
Section 6
General Reserve Fund
(1)
There is to be a General Reserve Fund of the Authority.
(2)
At the end of each financial year, the net profit of the Authority for that year is to be determined after allowing for the expenses of operation and after provision has been made for bad and doubtful debts, depreciation in assets, contributions to staff and pension funds and such other contingencies or purposes as the Authority may determine.
(3)
Subject to subsection (4), such part of the net profit for each financial year as the Authority may determine must be paid to the Government and the remainder of the net profit (if any) must be credited to the General Reserve Fund.
(3A)
Despite subsection (3), the Authority may pay to the Government such amount from the General Reserve Fund over and above the net profit (if any) as the Authority may determine.
(4)
Where the General Reserve Fund is in deficit at the end of a financial year —
if the Authority’s net profit for that financial year is larger than the deficit, an amount of not less than the net profit necessary to offset the deficit, as determined by the Authority, must be credited to the General Reserve Fund; and
if the Authority’s net profit for that financial year is smaller than or equal to the deficit, the whole of the net profit must be credited to the General Reserve Fund.