Section 11, The Bank of Sierra Leone Act, 2000

(1) The net profits of the Bank for each financial year shall be determined by the Board after making provision for bad and doubtful debts, depreciation in assets, contributions to staff and superannuation funds and for all other matters for which provision is made by or under this Act. (2) The Bank shall establish a General Reserve to which shall be allocated at the end of each financial year of the Bank— (a) in the case of any year at the end of which the General Reserve of the Bank does not exceed the minimum paid-up capital of the Bank, one-third of the net profits of the Bank for the financial year; or (b) in the case of any year at the end of which the General Reserve of the Bank exceeds the minimum paid-up capital of the Bank but does not exceed four times the paid-up capital of the Bank, one-sixth of the net profits of the Bank for the financial year. (3) After appropriate allocations have been made to the General Reserve under subsection (2)— 34 No. 3 Bank of Sierra Leone Act 2000 (a) one-quarter of the remainder of the net profits for the financial year shall be applied to the redemption of any securities of the Government held by the Bank which have been issued under section 10; and (b) a suitable amount to be determined by the Bank after consultation with the Minister, shall be allocated to the Development Credit Fund established under this Act. (4) With the approval of the Minister, further allocations may be made from time to time to the General Reserve to increase it beyond four times the minimum paid-up capital of the Bank. (5) The residue of the net annual profits for the financial year remaining after all deductions authorized by subsections (2), (3), (4) and section 54 have been made, shall be paid into the Consolidated Fund as soon as practicable after the end of each financial year. (6) No deduction authorized under subsections (2), (3) and (4) shall be required to be made nor shall any payment be made under subsection (5) if, in the judgement of the Board, the assets of the Bank are, or after the deduction or payment, will be, less than the sum of its liabilities and minimum paid-up capital. (7) If the Bank incurs any net loss during any financial year, such loss shall be charged to the General Reserve; and if the General Reserve is inadequate to cover the entire amount of the loss, the balance of loss shall be carried forward in an account for accumulated losses. (8) The balance of accumulated losses shall be replenished by Government by transferring to the Bank funds, negotiable securities bearing market related terms and conditions or foreign exchange on the lines indicated in subsection (6) of section 10. (9) If in any financial year there are accumulated losses carried forward from previous years and which losses have not yet been replenished by Government in the manner provided in subsection (8), the final profit of that year shall be allocated in priority to the cancellation of such accumulated losses. The allocations stipulated in subsections (2), (3) (4) and (5) shall refer only to the balance of profits which remains after the cancellation of accumulated losses carried forward from previous years. No. 3 Bank of Sierra Leone Act 2000 35 PART IV — ADMINISTRATION [Margin: Board of Directors.]