Malaysia legislation
Section 15
Section 15
Every licensed borrowing company shall—
(a)
maintain a reserve fund; and
(b)
before any dividend is declared, transfer to the reserve fund out of the net profits of each year (after due provision has been made for taxation)—
(i)
a sum equal to not less than fifty per centum of such net profits if the reserve fund is less than fifty per centum of its paid-up capital; and
(ii)
a sum equal to not less than twenty-five per centum of such net profits if the reserve fund is not less than fifty per centum but less than one hundred per centum of its paid-up capital.