88. At the annual meeting, the members of the association, after considering the recommendations of the board of directors and in accordance with the operating statement for the last fiscal year, shall allocate the amount of the annual operating surplus to the constitution of the general reserve and for rebates to members or to both members and patrons, in accordance with the by-laws.
They may allocate the entire amount to the general reserve.
The annual operating surplus of an association shall be allocated to the general reserve in a proportion of at least ten per cent. Nevertheless, this requirement shall cease when such reserve becomes equal to or greater than twenty-five per cent of the liabilities of the association, excluding the capital stock and such reserve.
R. S. 1964, c. 292, s. 82; 1970, c. 58, s. 22.