Dividend transfer to reserves: transfers required above a de minimis rate, conditions apply for larger transfers under rules. No transfer to reserves is required where the dividend declared does not exceed a de minimis rate; for dividends above that de minimis rate and up to the higher specified threshold a prescribed percentage of current profits must be compulsorily transferred to reserves under Rule 2. Transfers in excess of the basic threshold require compliance with the procedural and conditional provisions of Rule 3, which is consistent with the parent statutory purpose and has been reworded by amendment to effect a balance between capital formation and equitable shareholder return.