Co-Operative Societies Act 2008
31. Use of Statutory Reserves
1. Subject to the written approval of the Registrar, a society may use its statutory reserves for the following purposes—
a. make good deficiencies created by its operations; and
b. to recoup losses on its investments that cannot be covered from income for the year in which the loss was sustained.
2. When the Registrar receives a request for approval pursuant to paragraph (1) he may—
a. exempt the society from compliance with regulation 28(2)(a) for any period of time that he considers appropriate;
b. restrict the purposes for which the society may use its statutory reserves; or
c. do all or a combination of the things mentioned in sub-paragraphs (a) and (b) .