Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) The allocation of an operating profit of a category of business of a statutory fund must be made in accordance with the following rules:
(a) in the case of a profit of a category representing Australian participating business, at least 80%, or such higher percentage as is specified in the constitution of the company, of the profit must be treated as, or added to, Australian policy owners' retained profits of the statutory fund;
(b) any part of a profit of a category representing Australian participating business and not allocated under paragraph (a) must be treated as, or added to, shareholders' retained profits (Australian participating) of the statutory fund;
(c) subject to paragraph (d), any part of a profit of a category representing overseas participating business, to the extent that such an allocation would not be inconsistent with the constitution of the company, may be treated as, or added to, overseas policy owners' retained profits of the statutory fund;
(d) if the constitution of the company requires any part of a profit representing overseas participating business to be treated as overseas policy owners' retained profits, at least that part of the profit must be treated as, or added to, overseas policy owners' retained profits of the statutory fund under paragraph (c);
(e) any part of a profit of a category representing overseas participating business and not allocated under paragraph (c) must be treated as, or added to, shareholders' retained profits (overseas and non - participating) of the statutory fund;
(f) a profit of a category representing non - participating business must be treated as, or added to, shareholders' retained profits (overseas and non - participating) of the statutory fund.
(2) The allocation of an operating loss of a category of business of a statutory fund must be made in accordance with the following rules:
(a) in the case of a loss of a category representing Australian participating business, no more than 80%, or such higher percentage as is specified in the constitution of the company, may be taken into account in reduction of Australian policy owners' retained profits of the statutory fund;
(b) any part of a loss of a category representing Australian participating business and not allocated under paragraph (a) must be allocated in reduction of shareholders' retained profits (Australian participating) of the statutory fund;
(c) subject to paragraph (d), any part of a loss of a category representing overseas participating business, to the extent that such an allocation would not be inconsistent with the constitution of the company, may be allocated in reduction of overseas policy owners' retained profits of the statutory fund;
(d) if the constitution of the company requires any part of a loss of a category representing overseas participating business to be allocated in reduction of overseas policy owners' retained profits, no more than that part of the loss may be allocated in reduction of overseas policy owners' retained profits of the statutory fund under paragraph (c);
(e) any part of a loss of a category representing overseas participating business and not allocated under paragraph (c) must be allocated in reduction of shareholders' retained profits (overseas and non - participating) of the statutory fund;
(f) a loss of a category representing non - participating
business must be allocated in reduction of shareholders' retained profits
(overseas and non - participating) of the statutory fund.