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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 Funds

29. Winding-up by the court

 

(1) If the registrar is of the opinion that a fund is in such an unsound financial condition that any scheme as contemplated by section eighteen would be ineffective, impracticable or unsatisfactory, he may apply to the court for an order that the whole or any part of the business of the fund be wound up.

 

(2) Any creditor of a registered fund who is unable to obtain payment of his claim after recourse to the ordinary process of law may apply to the court for an order that the whole or any part of the business of the fund be wound up: Provided that a creditor shall not make application except by leave of the court, and the court shall not grant such leave unless the creditor has given security to an amount specified by the court for the payment of the costs of the application and of any opposition thereto, and has established the desirability of the order for which he wishes to apply.

 

(3) The court may make an order as prayed in terms of subsection (1) or subsection (2), subject to the provisions contained in the following subsections.

 

(4) The provisions of the Companies Act shall apply with the necessary changes to a winding-up under this section, in so far as the said provisions refer to a winding-up by the court in terms of the said Act, and in so far as the said provisions are applicable and not inconsistent with any provision of this Act or with any directions issued by the court under this section.

[Section 29(4) amended by section 39 of Act No. 45 of 2013]

 

(5) The court may direct that the aforementioned provisions of the Companies Act may, for the purposes of the winding-up be suitably modified in any particular case if, having regard to the circumstances of the fund concerned, it would be impracticable or unnecessarily onerous to comply with the said provisions in every particular case, and that in spite of such modification, the interests of the creditors of the fund will be sufficiently safeguarded.

[Section 29(5) amended by section 39 of Act No. 45 of 2013]

 

(6) In the winding-up of the whole or any part of the business of a fund, the value of the interests of the members or of the various groups of members of the fund, and the value of any benefits due by the fund to persons other than members, shall be ascertained in such manner as the court may direct.

 

(6A) In giving any order or direction under this section the court shall have regard to any recommendation which may have been made by the fund's valuator, if any, and accord full recognition to the rights and reasonable benefit expectations of the persons concerned and to additional benefits the payment of which by the fund has become an established practice.

 

(7) Without prejudice to the powers of the Master who has jurisdiction in respect of any winding-up, the liquidator appointed in terms of subsection (4) shall give the registrar such information as the latter may require from time to time and shall, whenever he intends to apply to the court for instructions, report accordingly to the registrar who shall be entitled to be heard personally or by a representative at any such application, and may himself make an application to the court with reference to the winding-up.

 

(8) If, where the court has ordered that the whole business of the fund be wound up, the registrar is satisfied that the winding-up of such a fund has been completed, he shall cancel the registration of the fund and thereupon the fund shall be deemed to be dissolved.