560

LAWS OF MARYLAND.

appointment by the directors, the president may
appoint a director to supply his place as president
pro tem.; the board of directors shall have power
to declare by a by-law, what number of directors,
though less than a majority of the whole, shall
constitute a quorum for the transaction of busi-
ness.

Fiscal year to
commence on
first of Janu-
ary.

SEC. 6. And be it enacted, That the fiscal year
of the Company, shall commence on the first day
of January, in each year, and terminate on the
last day of December in each year, but no sepe-
rate account or computation shall be made or re-
quired of the fraction of the year between the
date of the organization of the Company, and the
first day of January next following, but the same
shall be accounted and computed as a part of the
next ensuing fiscal year.

Estimate to
be made.

SEC. 7. And be it enacted, That the officers of
said Company, shall within one month after the
expiration of each fiscal year, cause an estimate
to be made as near as may be, of the profits of
said Company during the preceding fiscal year;
in which estimate the losses and expenses of the
said Company for the year, shall be deducted from
the earnings of said Company, and the income of
its capital and invested accumulations during the
same year, the balance shall be deemed the profits
of the Company for such year, and this estimate
shall be binding and conclusive upon all persons,
as well stockholders as those entitled to receive
dividends on premiums, as hereinafter provided,
and all others in any way concerned.

Ten per cent,
of the profits to
be reserved.

SEC. 8. And be it enacted, That after applying
from these profits sufficient to cover the payment
of six per cent, per annum, upon the stock in
semi-annual payments to the stockholders, as here-
inbefore provided, ten per cent, of the residue of
the profits of each year, shall be reserved by the
Company, as a surplus or reserved fund, and shall
be credited on the books of the Company, to an
account to be called the reserved fund; said re-
served fund shall be liable for any excess of
losses or expenses of the Company, above the
earned premiums of any year, and the whole of it
shall be liable to be used before the capital stock
shall be encroached upon; whenever such surplus
or reserved fund shall exceed the amount of two