FUNDS 18.1.3

Past version: effective from 21/10/2015 - 20/10/2015
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(1) Where, for the purpose of a transfer scheme, it is proposed that the property of a Fund should become the property of another Fund or the property of a Sub-Fund of an Umbrella Fund (other than one structured as Protected Cell Company or an Incorporated Cell Company), the proposal must not be implemented without the sanction of a Special Resolution of the Unitholders in the Fund, unless (3) applies.
(2) Where, for the purposes of a transfer scheme, it is proposed that Fund Property attributable to a Sub-Fund of an Umbrella Fund should become the property of another Fund, the proposal must not be implemented without the sanction:
(a) a Special Resolution of the Unitholders in the Sub-Fund of that Umbrella Fund; and
(b) unless implementation of the transfer scheme is not likely to result in any material prejudice to the interests of the Unitholders in any other Sub-Fund of that Umbrella Fund, a Special Resolution of the Unitholders of other Sub-Funds of that that Umbrella Fund.
(3) If it is proposed that a Fund, or a Sub-Fund of an Umbrella Fund, (other than an Umbrella Fund structured as a Protected Cell Company or an Incorporated Cell Company) should receive property, other than its first property pursuant to a transfer scheme, or an arrangement equivalent to a scheme of arrangement entered into with some other Fund or Sub-Fund, or a Body Corporate, the proposal must not be implemented without the sanction of a Special Resolution of the Unitholders or the class or classes thereof in the relevant Fund or Sub-Fund, unless (4) applies.
(4) In (3), if the Fund Manager and, if appointed, the Trustee agree that the receipt of the property concerned for the account of the Fund:
(a) is not likely to result in any material prejudice to the interest of the Unitholders of the Fund;
(b) is consistent with the objectives of the Fund or Sub-Fund of an Umbrella Fund; and
(c) could be effected without any breach of the requirements relating to the borrowing and investment restrictions relating to the Fund or Sub-Fund in Rule 13.4;

then the transfer may be effective and the issue of Units in exchange for assets as part of a transfer scheme may be undertaken.