s 18 Maintenance of reserve fund by finance companies
18.—(1) Every finance company must —(a) maintain a reserve fund; (b) transfer to that reserve fund out of the net profits of each year, after due provision has been made for taxation —(i) so long as the amount of the reserve fund is less than 50% of the paid‑up capital, a sum of at least 50% of those net profits; (ii) so long as the amount of the reserve fund is at least 50% but less than 100% of the paid‑up capital, a sum of at least 25% of those net profits; and (iii) so long as the amount of the reserve fund is 100% or more of the paid‑up capital, a sum of at least 5% of those net profits. (2) Any finance company which fails to comply with subsection (1) shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $20,000 and, in the case of a continuing offence, to a further fine of $2,000 for every day during which the offence continues after conviction.