47ADistribution of surplus funds

47A Distribution of surplus funds

47A Distribution of surplus funds

(1) Where:

(a) a person has forfeited or surrendered any option or shares under section 42 or 43 to a company,

(b) the company has deducted from the amount otherwise payable under section 46 to the person or the person’s lawful representative an amount referred to in section 46 (1) (a) (iii) in respect of an accumulated loss, and

(c) the company has, at any time after the forfeiture or surrender, surplus funds,

the Supervisor may direct the company to make a distribution in accordance with this section, out of those surplus funds to the person or the person’s lawful representative.

(2) Unless the Supervisor, having regard to the circumstances of the case, otherwise determines, the amount of the distribution to a person to whom subsection (1) applies shall be:

(a) an amount bearing the same proportion to the surplus, or such part of the surplus as is directed, under subsection (1), to be distributed, as the amount deducted in relation to the person under section 46 (1) (a) (iii) bore to the accumulated loss, or

(b) an amount equivalent to the amount deducted in relation to the person under section 46 (1) (a) (iii),

whichever is the lesser.

(3) Where, immediately before a distribution is made by a company in accordance with a direction under subsection (1), there was payable to the company by a person to whom subsection (1) applies a sum comprising any one or more of the following, namely:

(a) money liable to be paid under section 42 (5),

(b) a fee or penalty referred to in section 46 (1) (a) (i),

(c) an amount referred to in section 46 (1) (a) (ii),

that sum may be deducted by the company from the amount determined in accordance with subsection (2).

(4) The Supervisor shall not give a direction under subsection (1) to a company unless the Supervisor is of the opinion that the benefit to be derived by the persons to whom subsection (1) applies corresponds with the benefit to be derived by those persons who, as at the date of the distribution made in accordance with that direction, hold any options to acquire loan entitlement shares or any qualifying shares or loan entitlement shares in the company.