303 Income and capital of common fund

(1)

Each financial year, the council must—

(a)

pay or allocate the income from the common fund to the trusts entitled to the amounts invested in the common fund—

(i)

in proportion to the value of their respective interests in the common fund; and

(ii)

at a uniform rate determined by the council; and

(b)

hold the capital of the common fund on behalf of the trusts entitled to the amounts invested in proportion to the value of their respective interests; and

(c)

hold any income that is not paid or allocated to trusts, and any capital that is not held on behalf of trusts, in a reserve fund separate from other trust funds.

(2)

The council may apply funds held in the reserve fund, including any income derived from investments of the reserve fund, for any of the following purposes:

(a)

augmenting the capital of the common fund:

(b)

reinstating any losses of capital in the common fund:

(c)

increasing or supplementing the income paid or allocated to trusts that have interests in the common fund.

(3)

The council may withdraw any amount from the common fund to the credit of a trust that has an interest in the common fund—

(a)

for the purpose of investing the amount in a separate account for the trust; or

(b)

for any other purpose relating to the exercise and performance of its duties, powers, authorities, and functions.

(4)

If any amount is withdrawn from the common fund to the credit of a trust that has an interest in the common fund,—

(a)

that amount may, at the discretion of the council, be paid or provided in cash or rateably in investments, or partly in cash and partly rateably in investments; and

(b)

as from the date of its withdrawal, the trust has no claim on the fund in respect of the amount, whether for interest or otherwise.

(5)

The council—

(a)

may charge a reasonable fee, payable out of the income received by the common fund, for services provided by the council in relation to the administration or management of the common fund; and

(b)

must publish the amount of the fee, and the method by which the fee is calculated or applied (and any change to that method), in the annual report.

Compare: 1989 No 80 s 201E