Section 57 in The Assam Co-operative Societies Rules, 1953
57. Creation of reserve fund in a society.
- (i) In every registered society with unlimited liability and without shares not less than three-fourth of the net profits in any year shall be carried to the reserve fund.(ii)In every co-operative society with shares and with unlimited liability not less than one-half of the net profits in any year shall be carried to the reserve fund until that fund is equal to one-half of the total borrowed capital; thereafter not less than one-third of the net profits in any year until the reserve fund equals the amount of borrowed capital; and thereafter not less than one-fourth of the net profits in any year shall be carried to the reserve Fund :Provided that if by any increase in the borrowed capital the proportion of the reserve fund to the borrowed capital is reduced in any year, the share of the net profits to be credited to the reserve fund shall be raised to the extent required until the proportion is restored.
