Singapore legislation

Clause 7

Repeal and re-enactment of section 12

Section 12 of the principal Act is hereby repealed and the following substituted therefor: —“Maintenance of reserve fund by finance companies

12. Every finance company shall —

(a)

maintain a reserve fund;

(b)

if the paid-up capital of the finance company is not less than two million dollars, transfer to such reserve 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 thirty per centum of the net profits;

(ii)

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

(iii)

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

(c)

if the paid-up capital of the finance company is less than two million dollars, transfer to such reserve 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 the net profits;

(ii)

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

(iii)

so long as the amount of the reserve fund is not less than one hundred per centum of the paid-up capital, a sum equal to not less than ten per centum of the net profits.”.

Read in full context — Finance Companies (Amendment) Bill →