Section 35Part 4 — Property and Funds of Registered Societies
Reserve funds
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Every registered society which does or can derive profit from its transactions shall maintain a reserve fund.
At least twenty per cent of the net profits of every registered society as ascertained by the audit prescribed by section 39 or 45, as the case may be, shall be carried to the reserve fund which shall be employed as prescribed by the regulations.
Cross References
- Section 39 of Cooperative Societies Actexternal
Audit prescribed for net profits
- Section 45 of Cooperative Societies Actexternal
Audit prescribed for net profits