Suggest a correction

Distribution and disposal of certain shares on death of member who died before 1 January 1996 or has not executed memorandum under section 25(1)

Central Provident Fund Act 1953

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Wrong or mistyped textWrong structure or numberingWrong title or detailsDuplicated content

Proposed text

—(1) Upon the death of a member who died before 1 January 1996, or who has not executed any memorandum under section 25(1), such shares or class of shares in any approved corporation as the Minister may designate belonging to the member at the time of his or her death which were purchased from moneys withdrawn under this Act, despite any written or other law, vest in the Board and do not form part of the estate of the deceased member.(2) The Board must, as soon as practicable and subject to such terms and conditions as the Board may impose, transfer the shares vested in the Board under subsection (1) to —(a)the securities account (if any) belonging to and in the sole name of the deceased member; or(b)if the deceased member does not have any securities account in his or her sole name, the securities account opened and operated by the personal representatives of the deceased member on behalf and for the benefit of the estate of the deceased member.(3) The following is a discharge to the Board in respect of the shares vested in the Board under subsection (1):(a)the transfer of those shares in accordance with subsection (2)(a); or(b)the transfer of those shares in accordance with subsection (2)(b), and the receipt of the personal representatives of the deceased member in respect of those shares.(4) Where any document or information is necessary for effecting the transfer, in accordance with subsection (2), of any shares vested in the Board under subsection (1), the Board may, by notice to any person who possesses that document or information, require that person to furnish that document or information to the Board within such reasonable period as may be specified in the notice.(5) The Board may recover the whole or any part of any fee or charge in connection with the transfer, in accordance with subsection (2), of the shares vested in the Board under subsection (1) from the personal representatives of the deceased member.(6) Despite subsection (2), the Board may sell any shares vested in the Board under subsection (1), in such manner and at such time as may be prescribed by any regulations made under section 77(1), if —(a)the Board is for any reason unable to transfer those shares in accordance with subsection (2);(b)the 7th anniversary of the day of the member’s death has passed; or(c)there exist such other circumstances as may be prescribed in those regulations.(7) Where the Board has sold, under subsection (6), any shares vested in the Board under subsection (1) —(a)the Board may deduct a sum for the payment of the whole or any part of any fee or charge in connection with the sale of those shares from the proceeds of the sale of the shares;(b)the Board must, as soon as practicable and after such application as the Board may require has been made to the Board, pay the proceeds of the sale of the shares (after making any deduction under paragraph (a)) —(i)to the personal representatives of the deceased member; or(ii)if to the best of the Board’s knowledge the deceased member does not have any personal representatives, and if the proceeds of the sale of the shares do not exceed such amount as the Minister may, by notification in the Gazette, specify, to a proper claimant; and(c)the following is a discharge to the Board in respect of the shares sold under subsection (6):(i)the receipt of the personal representatives of the deceased member for the proceeds of the sale of the shares, if paragraph (b)(i) applies; or(ii)the receipt of the proper claimant for the proceeds of the sale of the shares, if paragraph (b)(ii) applies.(8) Subsection (7) does not affect any recourse which any person may have against a proper claimant for any amount paid to the proper claimant under subsection (7)(b)(ii).(9) Where the Board is for any reason unable to pay the proceeds of the sale of the shares (after making any deduction under subsection (7)(a)) in accordance with subsection (7)(b), the Board must pay those proceeds into the general moneys of the Fund.(10) To avoid doubt, subsection (9) does not preclude the Board from paying the proceeds of the sale of the shares (after making any deduction under subsection (7)(a)) in accordance with subsection (7)(b) after those proceeds have been paid into the general moneys of the Fund.(11) In this section —“child” means a legitimate child and includes any child adopted by virtue of an order of court under any written law for the time being in force in Singapore, Malaysia or Brunei Darussalam;“parent” includes an adoptive parent;“proper claimant” means a person who —(a)claims to be entitled to the proceeds of the sale of the shares vested in the Board under subsection (1) as executor of the deceased member; or(b)claims to be entitled to the proceeds of the sale of the shares vested in the Board under subsection (1) (whether for his or her own benefit or not), and is the widower, widow, child, grandchild, parent, brother, sister, nephew, niece, grandparent, uncle or aunt of the deceased member.

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