If distributing to live members only, the total of all the members’ investment balances as at the effective date of the distribution must be adjusted by the total of the investment balances of the exited members (as per the above definition).
If the exited members’ balances are not excluded from the total, then the total of each member’s apportionment will not equal the total amount being distributed.
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Example |
|
|
Distribution amount |
R150 |
|
Total of all members’ balances |
R100 000 |
|
Total of exited members’ balances |
R20 000 |
|
40 live members each with a balance of |
R2 000 |
|
10 exited members each with a balance of |
R2 000 |
|
A: R150 / R100 000 X R2 000 X 40 members |
R120 |
|
B: R150 / (R100 000 – R20 000) X R2 000 X 40 members |
R150 |