s 12 Maintenance of reserve fund
(1) The Bank shall— (a) maintain a reserve fund; and (b) before declaring any dividend from its net profits of each year (after due provision being made for taxation), transfer to its reserve fund out of the net profits of each year— (i) a sum equal to not less than forty per centum of the net profits of that year, so long as the amount of the reserve fund is less than fifty per centum of its paid-up capital; or (ii) a sum equal to not less than twenty per centum of the net profits of that year, so long as the amount of the reserve fund is fifty per centum but less than one hundred per centum of its paid-up capital. (2) Notwithstanding subsection (1), the Minister may specify a different portion of the net profits of each year, being either lesser or greater than the portions specified in subsection (1), to be transferred to the reserve fund of the Bank for the purpose of ensuring that the amount of the reserve fund of the Bank is sufficient for the purpose of its business and adequate in relation to its liabilities. (3) Notwithstanding subsection (1), the reserve fund may, with the approval of the Minister and subject to such terms and conditions as the Minister may impose, be applied in paying up unissued shares to be issued to members as fully paid bonus shares. (4) Nothing in this section shall authorize the Bank to pay dividends out of the reserve fund. (5) Where the Bank fails to comply with subsection (1), it shall not exceeding one million ringgit and, in the case of a continuing offence, to a further fine not exceeding one thousand ringgit for each day during which the offence continues after conviction.