Co-operatives Act, 2005 (Act No. 14 of 2005)Chapter 6 : Capital Structure46. Reserves for co-operatives |
[Section 46 heading substituted by section 33 of Notice No. 558, GG 36729, dated 5 August 2013]
| (1) | During each financial year a co-operative must retain indivisible reserves equal to such amount as may be determined by its constitution: Provided that such reserves must not be less than one per cent and not more than five per cent of its net asset value as reflected in its most recent audited report, independent reviewed report or annual report. |
| (2) | The reserve referred to in subsection (1) must be indivisible amongst members of the co-operative. |
| (3) | This section does not prevent a co-operative from making provision in its constitution for additional reserves, whether indivisible or otherwise, in excess of the percentages referred to in subsection (1). |
| (4) | The Minister must, by notice in the Gazette, provide guidelines for— |
| (a) | the manner in which records in respect of the reserves must be kept; |
| (b) | the purposes for which any of the reserves may be used; and |
| (c) | the manner in which a co-operative must report on the use of its reserves. |
[Section 46 substituted by section 33 of Notice No. 558, GG 36729, dated 5 August 2013]