Hong Kong Ordinances

OCCUPATIONAL RETIREMENT SCHEMES ORDINANCE - SECT 56

Distribution of assets

(1) Subject to subsections (2), (3) and (4), the assets of an
occupational retirement scheme shall on its winding up be applied by the
liquidator in satisfaction of its liabilities as at the date on which the
winding up commenced pari passu.

(2) The assets remaining after payment of the actual expenses incurred in
realizing any of the assets of the scheme shall be applied in satisfaction of
the following liabilities, which shall be satisfied in the following order of
priority-

   (a)  the remuneration of and expenses incurred by the liquidator;

   (b)  liabilities to general creditors;

   (c)  (unless the terms of the scheme otherwise provide) vested liabilities
        to the beneficiaries of the scheme as at the date on which the
        relevant winding-up order is made; and

   (d)  (unless the terms of the scheme otherwise provide) such part of the
        past service liabilities to the beneficiaries of the scheme (if any)
        which exceeds the vested liabilities thereto as at the date on which
        the relevant winding-up order is made.

(3) The surplus (if any) remaining after satisfaction of all liabilities
mentioned in subsection (2) shall be paid to the relevant  employer of the
scheme unless the terms of the scheme otherwise provide.

(4) Where the assets of the scheme are not sufficient to meet its liabilities,
the court may, notwithstanding any term of the scheme, direct that-

   (a)  those liabilities which are of a class or description specified by
        the court shall be discharged before any other liability of the scheme
        is wholly or party discharged; or

   (b)  as between them the discharge of those which are of specified classes
        or descriptions shall be preferred in an order also specified by
        the court. (Enacted 1992)