………………….. LIMITED EMPLOYEES PROVIDENT FUND RULES
PREAMBLE
1. These
rules shall be known as ……………LIMITED EMPLOYEES PROVIDENT FUND RULES
(hereinafter called “the Rules”) and shall take effect from the first day of July of Two Thousand Nineteen of
the Christian Era.
2. The
fund shall be contributory and be called the ………….. Limited Employees
Provident Fund (hereinafter called “the Fund)
3. Its
objects are to encourage and help employees to make financial provision on
retirement from services or for their family in case of death.
DEFINITIONS
4. In these rules unless there is
anything in the subject or context in text inconsistent with the meaning
assigned:
a) The ‘Fund’ means the …………………..Limited
Employees Provident Fund under these rules or other rules for the time being in
force with respect thereto.
b) The ‘Rules’ means these rules or other
rules for the time being in force with respect to the Fund.
c)
The ‘company’ means the ………………..
Limited.
d)
The ‘Trustees’ shall mean all members
of the Board of Trustees (BOT) of the Fund for the time being appointed under
the Deed of Trust.
e)
‘Employees’ means any permanent
employee in the service of the Company and who is not in the list of
apprentices, temporary, probationary, contractual or casual employees.
f)
‘Employer’ means the Company as appears
in (c) above.
g)
‘Member’ means a member of the fund in
accordance with these rules.
h) ‘Family’ means and includes dependents
of the members such as wife, husband, parents, children, minor brother,
unmarried sister and the deceased son’s widow and children.
i) ‘Salary’ means only the basic salary
received or receivable by each employee from the Company and excludes all other
allowances and perquisites.
j) ‘Board of Directors’ means the Board
of Directors of the Company for the time being in force.
k) ‘Leave’ shall mean any kind of leave
recognized under the Service Rules of the Company or by the law of the land.
l) ‘Financial Year’ means the period
beginning on the 1st day of July and ending on the 30th
day of June of the following year.
m) Words of the masculine gender shall,
unless a contrary insertion appears, be taken, include feminine gender.
n) Words of the plural numbers shall,
unless a contrary intention appears, be taken, include the singular and vice
versa.
o)
Board of Trustees means a body
consisting of all Trustees of the fund.
p) ‘Quorum’ means attendance of minimum
BOT members to validate a transaction of business in its meeting.
TRUSTEES
AND MANAGEMENT OF FUND
5. The
fund shall be vested in the Trustees for the time being and in such other
person as may from time to time be appointed by the Company to be the Trustees
of the Provident Fund and the Fund shall be held by the Trustees for the
purposes specified in the Rules of the Provident Fund hereunder and the Trustees
shall administer the Fund and the income thereof in accordance with these
Rules. The number of Trustees shall not be less than three (3) but not more than five (5) as laid out in the
Trust Deed.
6. The
Trustees shall appoint one from amongst them to be the Secretary of the Fund
who may receive all notices, documents and other correspondences that may be
given to the Trustees and may sign all correspondences on behalf of the Fund
and exercise such powers and authorities as may be conferred on him by the Trustees.
7. The
office of a Trustee shall be vacated if he dies or voluntarily resigns or is
found of unsound mind or is adjudged insolvent or is convicted of an offence
involving moral turpitude or if he is removed or withdrawn by the Company from
the Trust reposed in him after recording the reasons for so removing or
withdrawing in writing. The statutory power to fill up any vacancy in the Board
of Trustees shall be vested in and exercised by the Company.
8. a) Every Trustee shall be indemnified out
of the Fund in respect of any loss arising
from
or contingent upon any investments made out of any money of the fund unless
such loss shall have been occasioned directly by his own willful neglect or
fraud. Every Trustee shall also be indemnified out of the Fund against all
proceedings, suits, claims, costs, damages and expenses occasioned by any claim
in connection with the fund not arising out of his own willful neglect or
fraud.
b) No Trustee shall be liable for any loss
unless directly attributable:
i) to his own dishonesty, or
ii)
to the willful commission by him
of an act which he knows to be a breach of trust.
And
in particular he shall not be bound to take any proceedings against a
co-trustee for any breach or alleged breach of trust committed by such
co-trustee.
9. A
Trustee shall not be entitled to any remuneration or fees for performing any
act for or on behalf of the Trust. However, the Board of Trustees of the Fund at
its discretion may recommend for payment/reimbursement any fee or cost incurred
by any Employee/ Trustee in the performance of the duty on behalf of the Trust
which shall be borne by the Fund.
10. The
Trustees for the time being shall have complete control over the management of
the Fund and shall be vested with all powers, authorities and discretions
necessary or expedient for the purpose in addition to any express powers
conferred by these Rules.
11. a)
The Chairperson of the Company
shall be the Chairman of the Board of Trustees. The Trustees may meet together
for the dispatch of business, adjourn and otherwise regulate their proceedings
as they think fit and determine the quorum necessary for the transaction of
business. Unless otherwise determined, three (3) Trustees present shall form a quorum.
b)
A meeting of the Trustees at which
a quorum is present shall be competent to exercise all or any of the
authorities, powers and discretions by these Rules vested in the Trustees.
c)
The Trustees shall cause proper
minutes to be kept and entered in a minutes book of all their resolutions and
proceedings and any such minutes of any meetings of Trustees if purporting to
be signed by the Chairman of such meeting or by the Chairman of the next
succeeding meeting shall be received as prima facie evidence of the matters
stated in such minutes.
d)
A resolution in writing signed by
all the Trustees shall have the same effect and validity as a resolution of the
Trustees duly passed at a meeting of the Trustees duly convened and may consist
of several documents in the like form; each signed by one or more of the
Trustees.
12. The
Trustees shall be entitled to employ and pay legal adviser(s), accountant(s) or
other professional adviser(s) as they may consider necessary or expedient in
connection with the management of the Fund.
13. The
tenure of the office of the Board of Trustees (BOT) shall be five years
starting from the date of its constitution.
If no new Board of Trustees is appointed after the expiry of the said
five years it will be assumed that the same Board of Trustees shall continue
for the next five years and thereafter until the Company resolves otherwise.
14. The
Trustees, with the Consent of the Company, shall have the right to amend or
alter or frame new rules from time to time for smooth and efficient conduct of
the affairs of the Fund subject to approval of the Commissioner of Taxes.
MEMBERSHIP
15. All permanent employees of the
Company who are nationals of Bangladesh and are on the payroll of the Company,
other than those employed as apprentice, casual, probationary, contractual or
on temporary basis, shall become members of the Fund at the confirmation of
their services and the date of such confirmation of the service with the
Company shall be considered as the date of entry to the fund, unless an
employee gives in writing that he does not want to participate in the Fund.
16. a)
Subject to the provisions of this
Rule, every employee being confirmed in the
Services
of the Company shall be eligible to become a member.
b) A
member once having joined the Fund shall not be permitted to resign his/her
membership of the Fund whilst he/she shall be in the service of the Company.
c) Any
member of the Fund ceasing to be in the service of the Company for any reason
whatsoever, shall thereupon cease to be a member of the Fund.
d) A
member shall be bound by the Rules and shall be entitled to a copy of the Rules
thereof free of charge in the case of the first copy supplied to him and on
payment of the sum of Taka One Hundred for each subsequent copy.
CONTRIBUTIONS
17. a) Each member shall subscribe monthly to
the Fund a sum equal to 10%
(ten percent) of the basic salary payable
to him or any sum to be resolved by BOT for
that matter during the period of his service with the Company.
b) Such
subscription shall be deducted from the member(s)’ salary at time of each monthly
payment.
18. For
and in respect of each month the Company shall contribute to the Fund a sum
equal to the aggregate amount subscribed to the fund in the month by all the
members in accordance with Rule 17(a) hereof and shall pay the same along with
the members’ subscription to the Trustees within 7 (seven) days from the date of disbursement of
salary.
19. When
for any reason any member is placed under suspension by the company no deduction
from his salary shall be made during the period his suspension continues. Upon
reinstatement his subscription as well as company’s contribution to the Fund
shall commence as if he were not placed under suspension or deduction shall be
on the amount received as salary in relation to the period of suspension or
deduction shall be on the amount received as salary in relation to the period
of suspension.
BANK
ACCOUNTS AND INVESTMENT
21. The
Fund shall be operated jointly by signature of one member from each group
mentioned below:
Group 1: Chairperson or
Director of the Company – Management Representative
Group 2: Head of Finance
or Managing Director – Member Representative
22. All
contribution to the Fund by the members and the Company are paid to the
Trustees or earned by way of interest or otherwise by the Fund and not
immediately required for the purposes of the Fund shall from time to time be
invested in the name of the Fund in accordance with provisions of Section 399
(2) of the Companies Act, 1994 or in fixed deposit accounts maintained with any
scheduled bank(s) or any financial institutions, so that the securities in
which the contributions are made by the employees and the interest on the
accumulated balance of such contributions are invested and payable both in
respect of capital and interest in Bangladesh.
ACCOUNTS
AND AUDIT
23. The
Trustees shall keep proper books of accounts showing the receipts and payments
of the Fund and shall maintain individual accounts for each member of the Fund.
24. The
Trustees shall prepare a Balance Sheet and Income Statement relating to each
financial year showing the amount available for division among the members
arising out of the income accruing from investment and all other funds that
should properly be brought on to the accounts within the 1st Quarter
of the new financial year.
25. a) The
accounts shall be audited by a firm of Chartered Accountants every year,
within a period of 90 days following completion of the
Financial year.
b) All
the costs relating to stationery and audit fees of the fund shall be borne by
the Company.
26. At
the end of each financial year and as soon as the Balance Sheet and Income
Statement has been prepared and audited, each member shall be furnished with a
statement showing the position of his account.If any error shall be found
thereon and notified by the member(s) to the Trustees in writing within 30 days after the receipt
by him of such statement, upon scrutiny by the Trustees, the same shall be
rectified if found incorrect. If the members accept the statement to be correct,the
binding will be on the member to save the same for future record.
DISTRIBUTION
OF INCOME
27. Income
determined as per Rule 24 hereof shall be distributed every year among the
members proportionate to their balance standing at the end of the year.
LOAN
TO MEMBERS
28. A
member shall not be entitled to withdraw any sum from the amount standing to
his credit but the Trustees may, at its discretion, grant a loan to a member to
the extent of 60%
of his own contribution with profit after completion of his 5th year of
continuous employment at the date of application in all the grounds under
Rule-29.
29. The
loan by the employee(s) shall not be allowed by the Trustees except on special
grounds in the following circumstances or of a similar nature:
a)
To pay expenses incurred in connection
with serious illness of a member of his direct family.
b)
To pay expenses in connection with
marriage, funerals which by the religion of the member it is incumbent upon him
to perform and in connection with which it is obligatory that expenditure
should be incurred.
In
case of withdrawal for purpose specified in clauses above, the amount of
withdrawal shall not exceed six month’s basic pay.
Except
in the case where the amount withdrawn need not be repaid, no fresh amount can
be withdrawn until the amount already withdrawn has been repaid.
BOT
may resolve to charge a rate of interest on loan availed by an employee.
30. Loan
to member(s) shall be adjusted/ recovered in not more than 24 (twenty four) equal
monthly installments starting from the following month of disbursement of
respective loan and the Company shall deduct such installment(s) from the
member(s)’ salary along with interest on the balance of loan outstanding from
time to time at 1%
above the market rate which is payable on the balance in the fund at the credit
of the member in accordance with Rule 52
of the Income Tax Manual (Part-II), 1984.
31. A member is not entitled to take loan
from the fund for more than once in a financial year. In such a case the second
loan may be allowed only after full repayment/adjustment of the first loan and
not before expiry of ten calendar months of disbursement of the first loan.
FINAL
SETTLEMENT
32. On
ceasing membership of the Fund, a member shall be entitled to the amount
standing to the credit of his Own and the Company’s Contribution Account as per
stipulations laid hereunder:
i) If he leaves the service of the
Company before completion of two years, he shall be entitled only to the amount
standing to the credit of his Own Contribution Account and interest thereon.
ii) If he leaves the service of the
Company after completion of two Years, he shall be entitled to the entire
amount standing to the credit of his Own and also the Company’s Contribution
along with interest thereon.
iii)
In case of death of a member before
his retirement he shall be entitled to his Own and also the Company’s
contribution along with interest thereon irrespective of the period of his
service with the Company.
iv)
If any member be dismissed from the
service of the company for misconduct as defined in Bangladesh Labour Act,
2006, the Company shall have the right in its absolute discretion to recover
from the individual account of the member’s all contribution made by the
company to the individual member’s account together with interest credited in
respect of such contribution but the member shall be entitled to receive his
own contribution including interest on own contribution credited in respect of
such contribution.
33. Any
member whose service is terminated at any time after 2 (Two) years of service on account of
continued illness, not being due to his own fault, incapacitating him from the
proper discharge of his duties, and upon a certificate to this effect being
given by a medical practitioner nominated by the Company, shall be entitled to
the full amount standing to the credit to his own and Company’s contribution
account along with interest thereon.
In
case of termination of members’ service by the Company, otherwise than for
misconduct, the Company shall be the sole judge whether such termination has
resulted from any cause falling within this Rule or not and their decision
shall be final and binding in every case upon the Trustees and the member or
any person interested in the Fund.
34. If
any member leaves the service of the Company at any time before completion of
the financial year and audit thereof, he shall be entitled to the interest on
the amount standing to his credit on the date of his cessation at the rate as
per last audited accounts.
35. If
the PF fails to settle his accounts with the fund within 3 (three months) after
termination/retirement of a member, he shall be entitled to profit @5% pa payable by
the FUND during which such failure continues in addition to the profit
calculated as per Rule 34 above.
RESERVE
ACCOUNT
36. If
by the applications of any of the provision of Rules 32,33, 34 & 35 any
amount in the Fund standing to the credit of a member on his ceasing to be a
member becomes not payable or not paid to him or to the Company shall be
forfeited to the ‘Reserve Account’ provided always that the Company shall have first
charge upon the amount not exceeding the amount standing to his credit in
‘Company’s Contribution Account’, forfeited from a member as above for payment
to the Company of any sum due to the Company against the member in respect of
all losses, damages, costs and expenses which the Company may at any time have
sustained or been put to by reason of any negligent act or omission or fraud of
or by such member, and the Company shall be entitled to assess the amount of
such losses, damages, costs and expenses and its declaration on that behalf
shall be final and conclusive and the Trustees shall pay to the Company upon a
demand the amount so assessed out of the forfeited amount. The receipt of the
Company for any moneys paid to the Company under this Rule shall be due
discharge to the Trustees in respect of any such payment. Any balance standing
to the credit of this Reserve Account after meeting of the above noted claim,
if any, may be utilized in the manner to be decided by the Trustees.
NOMINATION
37. Each
member shall on joining the Fund forthwith nominate a person or persons in a
Form specified from the Fund in the event of his death before that amount has
become payable or having become payable has not been paid. If any person thus
nominated is a minor or under any disability to give a legal discharge for any
payment the member shall at the same time appoint another person who is of full
age and capable of giving a legal discharge for the purposes of receiving
payment on behalf of the minor or person under disability, so long as the
minority or disability continues, provided that if, at the time of making the
nomination, the member has a family, the nomination shall not be in favor of
any person or persons other than the members of his family and if, at the time
of making the nomination, the member has no family, the nomination shall become
invalid in the event of his subsequently acquiring a family.
ASSIGNMENT
OF INTEREST IN FUND PROHIBITED
38. Any
member shall not be entitled to draw any money from the fund against his/her
interest thereof or to transfer, assign, mortgage or charge his interest in the
fund, and in the event if any member purports to transfer, assign, mortgage or
charge his interest such action shall be invalid and the Trustees shall not
recognize the same. Thereupon all money standing in the book of the Fund to the
credit of such members shall be forfeited forthwith to the Trustees for the use
of the Fund and be dealt with accordingly. Any member who contravenes this rule
will render himself/herself liable to dismissal from the service of the
Company. Provided always that the Trustees shall be at liberty, in their
absolute discretion, at any time always thereafter to pay money or portion
thereof as they may think fit, to such member or his spouse, children or
relatives.
COMPANY’S
LIEN
39. a) In the event of any member being
dismissed from the service of the Company for
misconduct
or has voluntarily resigned or retired to avoid such dismissal, Company shall
be entitled to recover from the Fund any sum which it may have lost or the
amount of damage which it may have suffered by reason of the misconduct or
negligence of the member not exceeding the amount of Company’s contribution
which have been credited to the individual account of such member and interest
accrued thereon.
b) Save
as provided by the aforesaid rule no amount belonging to the Fund in the hands
of the Trustees shall be recoverable by Company.
ARBITRATION
40. If
any dispute shall at any time arise between the Trustees and any member or any
person claiming through him or on his account either as legal representative or
any other capacity, or between members or representatives or in any other
capacity, or between members or representatives of members regarding these
Rules or any matter arising there from the matter in dispute shall be
arbitrated by the Chairman of the Company or other person(s) agreed by both
parties.
WINDING
UP
41. The Trustees may at any time with the
consent of the Company shall if so directed by the Company on giving at least
six months’ notice in writing to each member personally or by posting such
written notice in a prominent place in the office of the company wind up the Fund
and pay out its assets to each member the sum standing to his credit after
paying and discharging the costs, charges and expenses of and incidental to the
realization of winding up and distribution of
the assets and after the accounts shall have been finally closed in
accordance with the Rules of the Fund in force and thereupon this Fund shall
cease to exist and the Rules thereof shall cease to have any effect other than
for the purposes of determining any right or title or exercising any power or
discretion in relation to the winding up or the distribution of the assets.
No
new employee of the company shall be admitted as additional member of the Fund
after the issuance of such notice as aforesaid. In the event of the company
going into liquidation whether voluntary or compulsory (save for the purpose of
reconstruction or amalgamation), the fund shall automatically cease and
determine and the Trustees thereupon wind up the Fund and distribute its net
assets in the manner hereinbefore in these Rules provided.
|
ONE PART (Company) |
OTHER PART (Trustees): |
|
(…………………………) Chairperson …………….. (Company name) |
(………………………….) Trustee ……………..Employees
Provident Fund |
|
(…………………………) Trustee ………………. Limited Employees Provident Fund |
(…………………………) Trustee ………………..
Limited Employees Provident Fund |
Witness to the above
1.
…………………… 2.
……………………..
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