Reserve Fund – Definition

In the context of Co-operative Housing Societies (CHS)

A Reserve Fund comprises of –

a) the amounts carried to this fund, from year to year, out of the net profit of that year

b) all entrance fees received by the society from its members

c) all transfer fees received by the society from its members on transfer of shares, along with the occupancy rights

d) all premium received by the society from its members on transfer of their interest in the capital or property of the society

e) all donations received by the society, except those received by it for the specific purpose.

Utilization: The Reserve Fund of the Society may be utilized for the expenditure on repairs, maintenance and renewals of the society’s property.

This is per the Model By-Laws of Maharashtra.

For Apartment Owners Associations (AOA) or Home Owners Associations (HOA), Residents Welfare Associations (RWA) etc., the definition can be utilized after removing #c and #d as not applicable.

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