Section 10Part 2 — Establishment, Capital and Administration of Authority
Allocation of profits
←→ Navigate · Click subsection badges to collapse · Press ? for help
The net profits of the Authority for each financial year shall be calculated in accordance with section 9 and shall be distributed as follows —
firstly, such amount from the net profits of the Authority as the board may determine to be consistent with the prudent management of the Authority, shall be allocated to the Currency Reserve so that the Currency Reserve shall, subject to section 32(7), be maintained at a level of at least one hundred per cent of the demand liabilities of the Authority;
secondly, so long as the General Reserve established under section 8 amounts to less than fifteen per cent of the demand liabilities of the Authority at the end of the financial year in which such profits were earned, there shall be allocated to the General Reserve all such net profits or such lesser amount as shall make the General Reserve equivalent to fifteen per cent of the said liabilities; and
any net profits not allocated in accordance with paragraph (a) or (b) shall be transferred to the general revenue of the Islands.
Where the total assets of the Authority are less than the total liabilities of the Authority such deficiency shall be a first charge on the Authority's net profits.
Defined Terms
net profitsCurrency ReserveGeneral Reservedemand liabilities
Cross References
- Section 9 of Monetary Authority Actexternal
calculation of net profits
- Section 32 of Monetary Authority Actexternal
Currency Reserve maintenance requirement
- Section 8 of Monetary Authority Actexternal
General Reserve