### Credit Unions Ordinance 《儲蓄互助社條例》

45. Reserve fund
(1) The board shall set aside a reserve fund, into which shall be paid—
(a) all entrance fees and fines collected from members; and
(b) during each financial year, not less than twenty per cent of the net earnings for the previous financial year, before the declaration or payment of any dividend in relation to the previous financial year,
until the reserve fund is equal to at least ten per cent of the share balance of the credit union, and such further amounts of the net earnings shall be paid into the fund in every year as may be necessary to maintain that percentage.
(2) The reserve fund shall not be used in making loans to members of the credit union. 
(3) Any income received from any part of the reserve fund which is deposited or invested shall be paid to the general revenue of the credit union.
(4)  The reserve fund shall be kept as a reserve against losses incurred from loans made by the credit union which remain outstanding after the time for their repayment in full has expired and other losses, other than excess expenditure over income, incurred by the credit union, and shall not be used for any other purpose except upon the winding-up of the credit union or with the prior approval in writing of the Registrar:
Provided that during the 12 months next following the date of its registration, an amount not exceeding the total of the entrance fees collected from members may be drawn from the reserve fund to meet any expenses incurred in the formation and organization of a credit union. (Amended E.R. 7 of 2020) 

46. Declaration, limit and payment of dividend
(1) After provision is made for the reserve fund, in accordance with section 45, and before the holding of the annual meeting of the credit union for that year, the board may by resolution recommend that a dividend, not exceeding six per cent per annum, shall be paid from the remainder of the net earnings and shall present any such resolution to that annual meeting.
(2) The annual meeting may declare a dividend for that year, which shall not exceed the amount recommended by the board.
(3)  A dividend so declared shall be paid on all shares fully paid up and registered in the name of the same member throughout the previous financial year:
Provided that a member who is registered as owner at the end of a financial year of shares which became fully paid up during that year shall be entitled to the proportional part of such dividend calculated from the fifth day of the month following the date upon which such shares became fully paid up. 
(4) Subject to subsection (3), payment of the dividend (if any) so declared may be made in such manner and amounts and at such times as may be provided in the by-laws.

### Credit Unions Ordinance 《儲蓄互助社條例》

47. By-laws
(1) The by-laws of every credit union shall be in a form approved by the Registrar.
(2) The by-laws of a credit union may, and, if so directed by the Registrar, shall, include provision for all or any of the following—
(a) the depositing of all or any specified funds or money of a credit union in a bank in Hong Kong approved by the Registrar; (Amended 35 of 1995 s. 15)
(b) the imposition of charges on any member whose account remains inactive for a specified period;
(c) the imposition of fines upon members for failure to meet their obligations to the credit union;
(d) specifying the purposes for which the profits of the credit union may be used.
(3) Any by-laws which are prescribed under section 85(a) shall, subject to such modification as may be approved by the Registrar, be deemed to be the by-laws of a credit union. (Amended E.R. 7 of 2020)
(4) Notwithstanding anything contained in section 20 of the Interpretation and General Clauses Ordinance (Cap. 1), it shall not be necessary to publish the by-laws of a credit union in the Gazette.

48. Amendment of by-laws
(1) By-laws may be amended only by a resolution of two-thirds of the members present and qualified to vote, at the annual meeting of the credit union or at a special meeting thereof called for the purpose.
(2) No such amendment shall be of any effect until the same has been approved in writing by the Registrar.

49. Binding effect of the by-laws
The by-laws of a credit union shall bind the credit union and the members thereof to the same extent as if each member had subscribed his name and affixed his seal thereto and there were in such by-laws a covenant on the part of himself, his executors, administrators and assigns to conform to such by-laws, subject to the provisions of this Ordinance.

50. Return of names of officers
A record of the name, occupation and address of each officer of a credit union shall be furnished to the Registrar not later than 10 days after the appointment of the officer.
(Amended E.R. 7 of 2020)

51. Return of supervisory annual audit
A copy of the audit report and balance sheet, submitted to the annual meeting in accordance with section 34(b) and approved thereat, shall be furnished to the Registrar not later than 30 days after the date of such meeting.
(Amended E.R. 7 of 2020)

### Credit Unions Ordinance 《儲蓄互助社條例》

52. Registrar’s annual examination
(1) The accounts of a credit union shall be examined at least once in every year by or under the direction of the Registrar and a credit union undergoing such examination shall produce all cash in hand, books, records and other documents required by the person conducting the examination.
(2) Every such examination shall include an inquiry into overdue debts (if any) and a valuation of the assets and liabilities of the credit union.
(3) A copy of the report of the last examination carried out under this section and a copy of the audit report and balance sheet referred to in section 51 shall be posted in a conspicuous place at the registered office of the credit union for not less than one month.

53. Information for Registrar and verification thereof
(1) A credit union shall furnish the Registrar with such statements with respect to its business, finances and other affairs and with such other information as he may from time to time require.
(2) Any statement and other information and any record and report required to be furnished by a credit union to the Registrar under this Ordinance or the by-laws shall be certified by the supervisory committee and verified by the president and the treasurer of the credit union.

54. Inquiry, examination and suspension
(1) The Registrar and any person authorized by him may inquire into the condition and affairs of a credit union and for this purpose shall be given access to all books, records and other documents of the credit union and may make such inquiries as are in his opinion necessary to ascertain its financial condition, its ability to provide for the payment of its liabilities as they become due and whether or not it has complied with this Ordinance.
(2) The Registrar may, if he is satisfied, from an inquiry into the condition and affairs of a credit union, that any of its funds, securities or other property may have been misappropriated or improperly used or that the books, records or other documents do not show its true financial position, appoint an auditor to make such inquiry and audit of the affairs of the credit union as the Registrar considers necessary. 
(3) The Registrar may, after an inquiry under this section, if he is satisfied that the continuance in business of such credit union would not be in the interests of its members or of the public, order the credit union to suspend business for such time as he may decide.

55. Winding-up of credit unions
No credit union shall be wound up unless in accordance with this Part the Registrar has made an order cancelling its registration.
(Amended 35 of 1995 s. 5)