Section 378Z-I General and other reserves
- Chapter
- XXIA · Producer Companies
- Amendments
- 1
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021378Z-I. General and other reserves.—
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(1) Every Producer Company shall maintain a general reserve in every financial year, in addition to any reserve maintained by it as may be specified in articles.
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(2) In a case where the Producer Company does not have sufficient funds in any financial year for transfer to maintain the reserves as may be specified in articles, the contribution to the reserve shall be shared amongst the Members in proportion to their patronage in the business of that Company in that year.