Section 58 in West Bengal Societies Registration Rules, 1963
58.
(1)The society shall maintain a reserve fund in respect of the profits, if any: derivable from its transaction.(2)The reserve fund shall consist of(a)not less than.................. per centum or such higher proportion of the net profits annually carried to the fund;(b)admission fee (after deducting preliminary expenses incurred in constituting the society);(c)the value of all shares forfeited;(d)the lapsed dividends and fines.(3)The reserve fund shall belong to the society and shall be indivisible and no member shall have any claim to a specified share in it:Provided that in case of division of the society into two or more new societies, the reserve fund may, with the sanction of the Registrar, be distributed equitably amongst the new societies.(4)The reserve fund, with the previous sanction of the Registrar shall be available for all or any of the following purposes:(a)to cover any loss, such drawing upon it being reimbursed from the profit;(b)to meet any call on the society which cannot be met otherwise, such payments being reimbursed when fresh collections are made; and(c)to serve as security for loans which the society may contract.(5)The society may in special cases if the Registrar so permits draw on the reserve fund without being required to reimburse the same from the next accruing profit.Use of Reserve Fund in Business
