Singapore legislation
Clause 6
Clause 6
General Reserve Fund
(1)
There shall 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 shall 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 as are usually provided for by banks.
(3)
Subject to subsection (4) of this section, such part of the net profit of the Authority, as the board determines, shall be placed to the credit of the General Reserve Fund and the remainder shall be paid to the Government.
(4)
Where at the end of a year the General Reserve Fund is —
less than half the paid-up capital of the Authority, the whole of the net profit shall be credited to the General Reserve Fund; and
not less than half the paid-up capital of the Authority but less than twice the paid-up capital of the Authority, not less than thirty per centum of the net profit shall be credited to the General Reserve Fund.