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What is a contingency fund and why does it exist?

April 26, 2017Contingency exist fund

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What is a contingency fund and why does it exist?

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10 Posted

A Corporation may set up a contingency fund to be used for purposes specified in the by-laws. This fund usually serves to cover unexpected expenses like emergency repairs not planned for in the operating budget or to cover shortfalls in the operating budget at the end of the year, if necessary.