Pension Funds Act, 1956 (Act No. 24 of 1956)Chapter V : Enquiries by Registrar, Applications to Court, Cancellation or Suspension of Registration and Dissolution of Funds30. Special provisions relating to liquidation of funds |
| (1) | In applying the provisions of the Companies Act in terms of section 28 or 29— |
| (a) | the members of a fund shall be treated as deferred creditors, and their claims against the fund in their capacity as members shall not be settled until the debts of ordinary creditors have been paid. |
| (b) | [Section 30(1)b) deleted by section 25 of Act No. 104 of 1993] |
[Section 30(1) amended by section 41 of Act No. 45 of 2013]
| (2) | If a fund has a share capital, the liability of a shareholder in the case of liquidation under the aforementioned sections shall either be limited to the amount (if any) unpaid on any share held by him, or shall be unlimited, according as is provided by the rules of the fund. |
| (3) | If a registered fund which has not been exempted from actuarial valuation in terms of section 2(3)(a) is liquidated in terms of section 28 or 29 after the date which minimum individual reserves are payable on cessation of membership, and the fair value of the assets of the fund, less any current liabilities, is less than the sum of the minimum individual reserves payable in respect of the existing members and former members who may participate in the distribution of the assets (with appropriate adjustment for benefits previously paid in the case of former members) and the cost of annuity policies which will provide equivalent pensions for the existing pensioners and deferred pensioners, the shortfall shall represent a debt payable by the employer to the find: Provided that, where more than one employer participates in the fund, the shortfall shall be distributed amongst such employers in a manner deemed reasonable by the liquidator. |