CENTRAL BANK OF SEYCHELLES ACT, 2004

(Act 12 of 2004)

PART IV – CAPITAL, PROFITS AND RESERVES

14. (1) The authorised capital of the Bank shall be R10,000,000 and may be increased from time to time by such amounts as may be proposed by the Board in consultation with the President.

(2) The initial paid-up capital of the Bank shall be R1,000,000 and there shall be paid up by the Government such further amounts as may from time to time be proposed by the Board in consultation with the President.

(3) All capital stock of the Bank as and when issued shall be for the sole account of the Government and shall not be transferable or subject to encumbrance.

(4) Notwithstanding any other provision of this Act, the President shall cause to be transferred to the ownership of the Bank non-negotiable, non-interest-bearing securities issued by the Government from time to time for such amount as is necessary for the purpose of preserving the paid-up capital from any impairment whenever, in the opinion of the Board, the assets of the Bank are less than the sum of its liabilities and paid-up capital.

15. (1) The net profits of the Bank for any financial year shall be determined by the Board after meeting all current expenditure for that year and after making provision for –

(a) bad and doubtful claims, depreciation of assets and contributions to staff and pension funds; and

(b) such other purposes as the Board may deem necessary to ensure that the Bank is in a sound financial position to meet its liabilities;

Provided that profits and losses arising under section 28 shall not be included in the calculation of profits and losses of the Bank under this section.

(2) Notwithstanding the provisions of subsection (1), the Board may, with the approval of the President, direct that any expenditure of an exceptional nature shall be a charge upon the General Reserve and shall be excluded from the calculation of the net profits of the Bank.

16. (1) The Bank shall establish and maintain a General Reserve to which shall be allocated at the end of each financial year of the Bank 50 per cent of the net profits of the Bank until such time as the General Reserve is equal in amount to the authorised capital of the Bank, after which 25 per cent of the net profits shall be allocated to the General Reserve until the General Reserve is equal to twice the authorised capital of the Bank.

(2) After appropriate allocations have been made to the General Reserve under subsection (1), 50 per cent of the remaining net profits shall be applied to the redemption on behalf of the Government of any securities held by the Bank which have been issued in accordance with section 14(4) or 28(2).

(3) Any remaining net profits after all deductions under subsections (1) and (2) have been made shall be transferred to the Consolidated Fund:

Provided that the Board, in consultation with the President, may direct that further allocations to the General Reserve may be made out of such remaining net profits.