| Commentary

380 Commission basis favourable to the company

| Commentary

380 Commission basis favourable to the company

Where a company appoints a distributor, the method of calculating commission which is most favourable to the company will be as follows:

  1. 380.1

        gross receipts will be calculated on a ‘remittance’ basis;

  2. 380.2

        the distributor will be permitted to deduct from the gross receipts the distributor's pre-approved expenses which will be limited to a maximum sum or percentage of income in any period;

  3. 380.3

        the balance of gross receipts remaining after the deduction of expenses will constitute net receipts;

  4. 380.4

        the commission payable to the distributor will be calculated as a percentage

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