ADVOKS GLOBAL · KENYA
The Co-operative Societies Rules
37. Duty to maintain reserve fund
Edition: 2022-12-31 · In force
37. Duty to maintain reserve fund
(1)Every co-operative society shall pay into the reserve fund maintained in pursuance to the provisions of section 47 of the Act, one-fifth of any net surplus resulting from the operations of the society during a financial year.(2)The reserve fund of a society shall be invested or deposited in the manner provided for in section 45 of the Act and these Rules.(3)No withdrawals shall be made from the reserve fund of a co-operative society without the consent in writing of the Commissioner and any such withdrawals shall be made good from the net available funds accruing to the society if the Commissioner so directs.(4)The reserve fund shall be indivisible and no member shall be entitled to claim a specified share of it.(5)The reserve fund shall be kept in separate account to be known as the reserve fund account.(6)The society shall cause an annual audit of the reserve fund account.