Section 18 in Jharkhand Co-operative Societies Act, 2008
18. Reserve Fund.
(1)At least twenty five percent of the net profits of a registered society shall each year be deposited to reserve fund provided that the State Government may by rule increase or decrease this proportion for the working of any Society or class of Societies.(2)The reserve fund shall not be used for the business of the society except to such extent and in such manner as may be prescribed by the Rules.(3)At least ten percent of the net profit shall be transferred to "Co-operative Education, Training & Development Fund" by all the registered societies.(4)In registered co-operative societies at least ten percent of the net profit shall be transferred to an "Equity Redemption Fund" till such time as the amount of this fund becomes equal to the share capital contribution of the State Government.(5)Any portion of the reserve fund not used for the business of the society may be invested or deposited in one or more of the ways specified in section 19 subject to such Rules as the State Government may make in this behalf.
