10-30-09. Earned surplus.
96 words·~1 min read·
/nd/title-10/chapter-10-30-development-corporations/10-30-09·A research copy — for the controlling text, always check the official state or federal source. Not legal advice.
Each year, the corporation shall set apart all of its net earnings as retained earnings. The corporation shall hold part of the retained earnings as a reserve for bad debts. The corporation may use the rest of the retained earnings in the course of its business. The amount held as a reserve for bad debts must be at least the amount recommended by the firm of certified public accountants that the board of directors approves to audit the corporation's financial statements. The board shall establish procedures for investing funds held as a reserve for bad debts.