Article Content
Chapter Six -- Surplus and Public Reserves
| Article 23 |
（Processing after-tax surplus ）
The after-tax surplus of a credit cooperative shall first be used to make up the accumulated losses; the remainder shall then be appropriated or distributed in accordance with the following order of priorities:
1. 40% or more thereof as legal surplus reserves;
2. Dividends on membership shares, provided that no dividends shall be allocated if there is no surplus of the current year;
3. 5% of the remainder, after deducting what is prescribed in the preceding Subparagraphs (1) and (2), as public welfare fund;
4. remunerations for directors and supervisors, provided that they shall not exceed 5% of the legal surplus reserves of the current year; and
5. Distributions to members on their transactions with the cooperative. |
| Article 24 |
（Appropriation of public reserves）
Where the amount of reserves appropriated under the preceding Article exceeds ten times the aggregate amount of the share capital, and the ratio of equity capital to risk capital has complied with what is prescribed in Article 44 of the Banking Act, and the credit cooperative may at its discretion determine the amount to be appropriated as reserves of the year, provided however that, the percentage of surplus so appropriated shall be not less than 15%.
In addition to legal surplus reserves, a credit cooperative may, by articles of cooperative or a resolution of the general meeting of members, determine to establish special surplus reserves. Where necessary, the Central Competent Authority may also order that such reserves be established. |
| Article 25 |
（Funds shall be accumulated as capital reserves）
The following funds shall be accumulated as capital reserves:
1. Capital gains from disposal of fixed assets;
2. Donations received;
3. Excess of appreciation over depreciation from revaluation of fixed assets; and
4. The balance of assets received from a credit cooperative that has ceased to exist as a result of an amalgamation, fewer debts assumed from the credit cooperative, and the amounts paid to members of the credit cooperative. |