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bruneilawsby aturio
In force2021 Revised Edition
Contents

Part · Reserve Funds, Dividends, Balance Sheets and Information

13. Maintenance of reserve fund by finance companies

Every finance company shall -

(a)

maintain a reserve fund;

LAWS OF BRUNEl

Finance Cbnzpanies

CAP. 89 15

(b)

if the paid-up capital of the finance company is not less than

$2 million, transfer to such 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 50 per cent of the paid-up capital, a sum equal to not less than 30 per cent of the net profits;

(ii)

so long as the amount of the reserve fund is not less than 50 per cent but less than 100 per cent of the paid-up capital, a sum equal to not less than 15 per cent of the net profits;

(iii)

so long as the amount of the reserve fund is not less than 100 per cent of the paid-up capital, a sum equal to not less than 5 per cent of the net profits; and

(c)

if the paid-up capital of the finance company is less than $2

million, transfer to such 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 50 per cent of the paid-up capital, a sum equal to not less than 50 per cent of the net profits;

(ii)

so long as the amount of the reserve fund is not less than 50 per cent but less than 100 per cent of the paid-up capital, a sum equal to not less than 25 per cent of the net profits;

(iii)

so long as the amount of the reserve fund is not less than 100 per cent of the paid-up capital, a sum equal to not less than 10 per cent of the net profits.

Report

Read on from s 13A

Part

Regulation of Business

Read on from Part

Part

Minimum Liquid Assets

Read on from Part

Part

Inspection of Finance Companies

Read on from Part

Part 7

Read on from Part 7

Part

General

Read on from Part