Singapore legislation

Clause 12

Maintenance of reserve fund by finance companies

Every finance company —

(a)

shall maintain a reserve fund;

(b)

before any dividend is declared, shall transfer to such fund out of the net profits of each year after due provision has been made for taxation —

(i)

so long as the amount of the reserve fund is less than fifty per centum of the paid-up capital, a sum equal to not less than fifty per centum of such net profits;

(ii)

so long as the amount of the reserve fund is fifty per centum but less than one hundred per centum of the paid-up capital, a sum equal to twenty-five per centum of such net profits.

Read in full context — Finance Companies Bill →