Hong Kong Regulations

GRANT SCHOOLS PROVIDENT FUND RULES - RULE 14

Payments out and pro rata of dividends

(1) Payments due to contributors under these rules shall be certified by the
secretary and treasurer, and cheques in respect thereof and in respect of all
disbursements by the fund shall be signed by the chairman and treasurer or, in
the event of the chairman being absent from Hong Kong or for any reason unable
to sign cheques, by the vice chairman and the treasurer. (G.N.A. 85 of 1955;
L.N. 10 of 1987)

(2) Where a contributor's account has been closed under rule 13 or 13A, and if
after notice has been published in the Gazette no lawful claim is made within
3 years from the date on which the account was closed, the amount standing to
the credit of the account shall be transferred to the credit of the reserve
fund. (L.N. 239 of 1982; L.N. 232 of 1997)

(3) Subject to paragraph (4), the amount of any dividend, declared in
accordance with rule 12, in respect of an account which was closed under rule
13 or 13A at or after the end of any financial year ("1st relevant financial
year") and before the next annual general meeting of the board, shall be paid
to the person entitled to payment of the sum standing to the credit of the
account. (L.N. 232 of 1997)

(4) Subject to paragraph (8), where an account to which paragraph

(3) applies was opened after the last day of September of the 1st relevant
financial year, then the amount of any dividend payable by virtue of paragraph
(3) in respect of the account shall be reduced by an amount equivalent to the
dividend divided by 365 (or 366 if that year includes a February with 29 days)
and then multiplied by the total number of days of that year when that account
had not been opened but excluding, if that account was opened on a day in a
month of that year other than the first day of the month, the days of that
month preceding the day on which that account was opened. (L.N. 232 of 1997)

(5) Subject to paragraphs (6) and (8), the provisions of rule 12, in relation
to the declaration of any dividend, shall apply to an account
("relevant account") closed under rule 13 or 13A on a date ("1st date") in a
financial year ("2nd relevant financial year") other than 31 August of that
year ("2nd date") as if the account, with the amount standing to its credit on
the 1st date, had been so closed on the 2nd date and, accordingly, the amount
of any such dividend in respect of the account shall be paid to the person
entitled to payment of the sum standing to the credit of the account. (L.N.
232 of 1997)

(6) The amount of a dividend to which paragraph (5) applies shall be reduced
by an amount equivalent to the dividend divided by 365 (or 366 if the 2nd
relevant financial year includes a February with 29 days) and then multiplied
by the total number of days of the 2nd relevant financial year when the
relevant account had either not been opened or was closed but excluding-

   (a)  the 1st date; and

   (b)  if that account was opened on a day in a month of that year other than
        the first day of the month, the days of that month preceding the day
        on which that account was opened. (L.N. 232 of 1997)

(7) Subject to paragraph (8), the amount of any dividend, declared in
accordance with rule 12, in respect of an account which-

   (a)  has not been closed under rule 13 or 13A; but

   (b)  was opened after the last day of September of a financial year, shall
        be reduced by an amount equivalent to the dividend divided by 365

(or 366 if that year includes a February with 29 days) and then multiplied by
the total number of days of that year when the account had not been opened but
excluding, if that account was opened on a day in a month of that year other
than the first day of the month, the days of that month preceding the day on
which that account was opened. (L.N. 232 of 1997)

(8) Paragraphs (4), (5) and (7) shall not apply to any financial year before
the financial year beginning 1 September 1997. (L.N. 232 of 1997)

(9) For the avoidance of doubt, it is hereby declared that-

   (a)  where a contributor's account has been closed under rule 13 or 13A, no
        dividend shall be carried thereto under rule 12 except in accordance
        with the provisions of this rule;

   (b)  the period beginning the day next following the 1st date and ending
        the 2nd date shall not be taken into account as continuous 
        contributory service of that contributor for any purpose;

   (c)  the period for calculating under these rules the amount of any
        dividend, declared in accordance with rule 12, in respect of an
        account which was closed under rule 13 or 13A shall include the date
        on which the account was closed. (L.N. 232 of 1997)