Singapore legislation
Clause 44
Clause 44
Maintenance of reserve funds
(1)
Every chit fund company shall maintain a reserve fund.
(2)
At the end of each financial year the net profit of each chit fund company shall be determined after allowing for taxation, and after making provision for bad or doubtful debts.
(3)
Such part of the net profits as is specified in this subsection shall be transferred to the reserve fund at the end of each financial year, as follows: —
where the reserve fund is two hundred per centum or more of the paid-up capital, a sum of not less than five per centum of such net profits;
where the reserve fund is not less than one hundred per centum but less than two hundred per centum of the paid-up capital, a sum of not less than fifteen per centum of such net profits;
where the reserve fund is less than one hundred per centum of the paid-up capital, a sum of not less than thirty per centum of such net profits.