Private School Act Article 46

Private schools’ incomes shall be used to pay for budget expenditures in the current year. The surplus shall be retained in the school fund for use.With the approval of the competent authority of schools, the school legal person may spend less than half the accumulated surplus mentioned in the preceding paragraph on investments helping to increase financial resources of the school or on virements for a different school set up by the same school legal person. Regulations governing use of the surplus, its items, conditions, procedures, ratios, limitations, and other matters to be observed shall be drawn up by the Ministry of Education.The board shall make the investments mentioned in the preceding paragraph in accordance with the provisions of the Charter and relevant laws. If the school legal person incurs losses as a result of a breach of the said provisions, the board members taking part in making the investment decisions shall be held liable for the losses. However, any board members expressing objections which can be corroborated by records or written declarations shall not be held liable.