Co-operatives Act, 2005 (Act No. 14 of 2005)RegulationsCo-operatives Administrative Regulations, 2016Chapter 1 : Co-operative Registration and SupportPart 1 : Co-operative Registration, Governance and Maintenance18. Reserves for Co-operatives |
| (1) | The indivisible and other reserves of a co-operative must be separately recorded in the financial records of the co-operative. |
| (2) | A co-operative must use its reserves only in accordance with the manner and for the purposes contemplated in its constitution. The purposes for which the indivisible reserve, which must be indivisible amongst members, may be used, may include— |
| (a) | to sustain the co-operative during periods of financial crisis; |
| (b) | to finance capital expenditure; and |
| (c) | to finance training and capacity building. |
| (3) | A co-operative must report fully on all its reserves as well as on the use of these reserves in its financial statements. |