Malaysia legislation

Section 15

of BANKING ACT 1973

Section 15

(a)

shall maintain a reserve fund; and

(b)

before any dividend is declared shall transfer to the 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 fifty per centum of the paid-up capital, a sum equal to not less than fifty per centum of the net profits;

(ii)

so long as the amount of the reserve fund is fifty per centum but less than one hundred per centum of the paid-up capital, a sum equal to not less than twenty five per centum of the net profits.

(2)

If the Minister is satisfied that the aggregate reserve fund of a licensed bank incorporated outside the Federation is adequate for its business he may by order in writing exempt the bank from the provisions of subsection (1).

Read in full context — BANKING ACT 1973 →