Commonwealth Consolidated Regulations Commonwealth Consolidated Regulations(1) If a trustee of an accumulation fund initiates winding - up proceedings in relation to the fund, priority must be given to the liabilities of the fund in accordance with this regulation.
(2) The first charge on the assets of the fund must be the liability in respect of the administration and other costs associated with the winding - up proceedings.
(3) In determining the priorities to be given to the remaining liabilities of the fund, the trustee must ensure compliance with subregulations (4) and (5).
(4) If the fund is solvent at the winding - up date, the amount allocated to each individual member of the fund at the winding - up date must not be less than the minimum guaranteed benefit of the member.
(5) If the fund is technically insolvent at the winding - up date, an amount equal to the net realisable value of the assets at the winding - up date must be apportioned among all the members of the fund at that date so that the proportion of that amount that is apportioned to an individual member bears the same relation to the whole amount as the minimum guaranteed benefit of that member bears to the total of minimum guaranteed benefits in respect of all the members of the fund at the winding - up date.