(1) Subject to this Part, a fidelity fund shall be held and applied for the purpose of compensating persons who suffer pecuniary loss from any defalcation committed by a member company or member firm or any of its directors or partners or by any of the employees of such a member company or member firm in relation to money or other property which in the course of or in connection with the business of that company or firm-

(a) was entrusted to or received by a member company or any of its directors or partners or employees of the company or firm for or on behalf of any other person; or

(b) was entrusted to or received by the member entrusted to or received by the member company or member firm or any or on behalf of the trustees of that money or property.

(2) Except as otherwise provided in this section, the total amount that may be paid under this Part to persons who suffer loss through defalcations by a member company or member firm or any of its directors or partners or through defalcations by any of the employees of the company or firm shall not, in any event, exceed in respect of that member company or member firm the sum of 2 million cedis, but for the purposes of this subsection any amount paid from a fidelity fund shall to the extent to which the fund is subsequently reimbursed be disregarded.

(3) Where, after taking into account all ascertained or contingent liabilities of a fidelity fund, the council considers that the assets of the fund so permit, the council may decide to increase the total amount which may be applied from that fund under subsection (2) and shall inform the Commission accordingly.

(4) The Commission shall then cause notice of the decision to be published in the Gazette: from the date of the publication until the notice is revoked or varied, the amount specified in the notice shall be the total amount which may be applied for compensation for pecuniary loss.

(5) Where the council decides to revoke or vary the contents of the notice under subsection (4), the council shall inform the Commission which shall then cause notice of such revocation or variation to be published in the Gazette.

(6) If, in any particular case after taking into account all ascertained or contingent liabilities of a fidelity fund, the council considers that the assets of the fund so permit, the council may apply out of the fund such sum in excess of the total amount limited by or under this section as the council in its discretion thinks fit, towards the compensation of persons who have suffered pecuniary loss as provided in subsection (1).

(7) Notwithstanding any provision in subsections (2), (3), (4) and (6), the Secretary may, direct the council to increase the total amount which shall be applied from a fidelity fund of a particular member company or member firm in payment to persons who suffer loss through defalcations by that particular member company or member firm or by any of its directors or partners or by any of the employees of that company or firm.

(8) For the purposes of this section, "director of a member company" or "partner of a member firm" includes a person who has been, but at the time of any defalcation in question has ceased to be such director or partner if, at the time of the defalcations, the person claiming compensation has reasonable grounds for believing that person to be a director of a member company or a partner of a member firm.