s 44 Maintenance of reserve funds
44.—(1) Every chit fund company must maintain a reserve fund. (2) At the end of each financial year, the net profit of each chit fund company is determined after allowing for taxation, and after making provision for bad or doubtful debts. (3) Such part of the net profits as is specified in this subsection must be transferred to the reserve fund at the end of each financial year, as follows:(a) where the reserve fund is 200% or more of the paid‑up capital, a sum of not less than 5% of the net profits; (b) where the reserve fund is not less than 100% but less than 200% of the paid‑up capital, a sum of not less than 15% of the net profits; (c) where the reserve fund is less than 100% of the paid‑up capital, a sum of not less than 30% of the net profits.