ACT 6 BORROWING COMPANIES ACT, 1969 PART III - FINANCIAL
Section 15. Maintenance of reserve fund.
Every licensed borrowing company shall -
(a) maintain a reserve fund; and
(b) before any dividend is declared, transfer to the reserve fund out of the net profits of each year (after due provision has been made for taxation) -
(i) a sum equal to not less than fifty per centum of such net profits if the reserve fund is less than fifty per centum of its paid-up capital; and
(ii) a sum equal to not less than twenty-five per centum of such net profits if the reserve fund is not less than fifty per centum but less than one hundred per centum of its paid-up capital.
