CLOSING OF ASSOCIATION YEARS
- The Directors may, with effect from such date after the end of each association year as they may in their discretion decide, declare that the association year for any class shall be closed.
- The Directors may declare that any such association year is closed notwithstanding that it is known or anticipated that there are in existence or may in the future arise claims, expenses or out-goings in respect of such association year which have not yet accrued or whose validity, extent or amount has not yet been established.
- If upon the closing of any such association year or at any time thereafter it shall appear to the Directors that the whole of the contributions, premiums and other funds received in respect of that association year (and of all the transfer from general reserves and provisions made for the credit of or in respect of such policy year) are unlikely to be required for the purposes referred to in General Rule 7.2, the Directors may decide to dispose of any excess which in their opinion is not so required by transferring the excess or any part thereof to the general reserve or operating funds of the Association, to be available for all purposes of the Association irrespective of class and association year, or to the equalisation reserve.
- The Directors may apply the general reserves of the Association by transferring to the credit of any association year for any class such proportion of the general or equalisation reserves of the Association as they see fit, in order to ensure that the association year of the class concerned is adequately funded.
- If at any time after an association year for any class has been closed it shall appear to the Directors that the funds required in respect of such association year for the purposes referred to in General Rule 7.2 exceed or are likely to exceed the totality of the contributions, premiums and other receipts in respect of such association year (including all transfers from reserves and provisions made for the credit of or in respect of such policy year) then the Directors may decide to provide for such deficiency in any one or more of the following ways:
- by transferring funds from the general reserves or operating funds of the Association.
- by transferring funds standing to the credit of any other closed association year of the class concerned,
- by levying an advance or supplementary contribution on an open association year for the class concerned for the purpose of meeting the whole or a part of such deficiency,
- by levying a Special Call
If the Directors shall resolve as set out in General Rule 15.5(c) the Managers shall so inform the Members entered for such policy year on or before the time that payment is demanded.
- At any time after any association year has been closed, the Directors may resolve to amalgamate the accounts of any two or more closed association years for any class and to pool any amount standing to the credit of the same. If the Directors shall so resolve then such closed association years concerned shall for all purposes be treated as though they constituted a single closed association year.