MCOS Act 52Chapter VII · Property and Funds of Registered Society
Section 52 · Reserve Fund
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(1)
Every registered society shall maintain a Reserve Fund formed for its profits and carry to the fund in each year not less than twenty five per centum of its net profits.(2)
The Reserve Fund shall be invested separately in any of the ways prescribed in Section 51 or, with the sanction of the Registrar, in immovable property required for the furtherance of the activities of the society. Any such investment shall be deemed to constitute Reserve Fund. No instrument securing a loan on a Reserve Fund shall be valid.(3)
The Reserve Fund shall not be utilised for any purpose whatsoever except with the sanction of the Registrar, who shall accord such sanction only in exceptional circumstances.Your private note on this section
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