Section 42, Act, 2002 (Act No 12 0f 2002);

(1) The Company shall continue to maintain a Special Reserve Fund comprising monies set aside from revenue, in each financial year, as the Board shall determine. (2) The Special Reserve Fund shall be applicable- (a) to cater for any emergencies or deficiencies in the income of the company; (b) to meet any extraordinary claim or demand in respect of the undertakings of the Company; or (c) for the payment of the cost of expansion, improvement or renewal of the waterworks. (3) The Board shall cause all monies appropriated to the Special Reserve Fund to be deposited in an interest bearing account. PART VIII — OFFENCES