law: Co-Operative Societies Act 2008 
  119.
  
  Reserve Fund liquidity reserve, and adequacy of capital
  1.      Where a society
  
  realises a surplus from its transactions that society shall establish and
  
  maintain a Reserve Fund.
  2.      Where the annual
  
  audit of a society indicates a net surplus, at least 20 percent of that
  
  surplus, shall be credited to the Reserve Fund; and such reserve fund may,
  
  subject to the approval of the Registrar, be used in the business of the
  
  society, including unforeseen losses, unexpected shortfalls in liquid cash,
  
  capital retention, repair and maintenance and the avoidance of external
  
  borrowing.
  3.      Every society shall
  
  ensure that its statutory and other reserves are, at no stage, less than 10 ten
  
  percent of its total liabilities.
  4.      The Registrar shall,
  
  on the application of a society or on his own account, grant a period of time
  
  that he considers reasonable to enable management to make good any deficiency
  
  in the adequacy of its capital base.
  5.      Subsection (3)
  
  applies to credit unions only.