Section 217(1) runs thus: 818 "217(1) There shall be attached to every balance sheet laid before a company in general meeting, a report by its Board of directors, with respect to (a) the state of the company 's affairs, (b) the amounts, if any which it proposes to carry to any reserves in such balance sheet, (c) the amounts, if any, which it recommends should be paid by way of dividend; (d) . . . . . . " Regulation 87 of Table A in the First Schedule runs thus: "87(1) The Board may, before recommending any dividend, set aside out of the profits of the company such sums as it thinks proper as a reserve or reserves which shall, at the discretion of the Board, be applicable for any purpose to which the profits of the company may be properly applied, including provision for meeting contingencies or for equalising dividends; and pending such application may at the like discretion, either be employed in the business of the company or be invested in such investments (other than shares of the company) as the Board may, from time to time, think fit.