Central Provident Fund (Distribution and Disposal of Shares in Approved Corporation) Rules

Central Provident Fund Act

(Chapter 36, Sections 26(3) and 77(2)(k))

Central Provident Fund (Distribution
and Disposal of Shares in Approved
Corporation) Rules

R 9

G.N. No. S 576/1995

REVISED EDITION 1998

(1st January 1998)

[1st January 1996]

Citation

1. These Rules may be cited as the Central Provident Fund (Distribution and Disposal of Shares in Approved Corporation) Rules.

Definitions

2. In these Rules —

“memorandum” means a memorandum executed by any member under section 25(1) of the Act;

“Securities Account” means a Securities Account with the Central Depository (Pte) Limited;

“stockbroker” has the same meaning as in the Securities Industry Act (Cap. 289).

Transfer of shares upon death of member

3.—(1) Where a member has executed a memorandum nominating any person to receive any shares in an approved corporation designated under section 26(1) of the Act held by him upon his death, the Board may, upon the death of the member, request the person nominated to furnish such information that is necessary for effecting the transfer of the shares to the Securities Account of that person.

(2) The Board shall, upon receipt of the information specified in paragraph (1), transfer to the Securities Account of the person nominated such entitlement of shares as specified in the memorandum.

(3) Any fee or charge in connection with the transfer of the shares under paragraph (2) shall be paid by the person receiving the shares.

Payment of fees and charges in connection with transfer

4.—(1) The Board may, on the application of any person, authorise the withdrawal of any sum from the amount that is standing to the credit of a deceased member in the Fund which the applicant is nominated to receive to be used for the payment of the fees or charges in connection with the transfer of shares under these Rules.

(2) An application to the Board under paragraph (1) shall be —

(a)	made in such form or manner as the Board may determine; and
(b)	accompanied by such document or information as the Board may require.

Sale of shares

5.—(1) The Board may sell any shares of the deceased member under section 26(3) of the Act if —

(a)

the person entitled to receive the shares —

(i)	is a mentally disordered person within the meaning of the Mental Disorders and Treatment Act (Cap. 178);
(ii)	does not have a Securities Account and fails to open such account within the period of time stipulated by the Board in a notice sent to the person;
(iii)	is below 21 years of age; or
(iv)	cannot be contacted within the period of time stipulated by the Board in a notice sent to the person; or

(b)

the Board is for any other reason not able to transfer the shares to the person.

(2) The Board may appoint a stockbroker for the purpose of selling the shares under these Rules and the expenses of such sale shall be borne by the person entitled to receive the proceeds of the sale of the shares.

[G.N. No.S576/95]

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