Home / CY AIF Law of 2018 / PART ΙΙ: PROVISIONS REGARDING THE ALTERNATIVE INVESTMENT FUNDS / Chapter 10: Mergers / [92] Right to redeem, repurchase or convert units.

92. Right to redeem, repurchase or convert units.

(1) The unitholders of the merging and the receiving AIFs have the right to request, without any additional charges than those retained by the AIF to meet the cost of divestment, the redemption or repurchase of their units or, where this is possible, their conversion in units of another AIF with similar investment policy, which is managed by the same external manager or another company with which the external manager is connected with common management or control or qualifying holding:

It is provided that, the above right shall become effective from the moment that the unitholders of the merging and the receiving AIFs are informed about the proposed merger and shall cease to exist five (5) working days before the date of the calculation of the exchange ratio.

(2) (a) Without prejudice to section (1) and by way of derogation from article 7(1), the AIFs that participate in the merger may decide to temporary suspend the subscription, redemption or repurchase of their units, after the relevant approval of the Securities and Exchange Commission, provided that such suspension is required for the protection of the unitholders.

(b) Without prejudice to paragraph (a), the Securities and Exchange Commission may decide to temporary suspend the subscription, redemption or repurchase of the units of the AIF that participates in the merger, where it decides that the suspension is required for the protection of the unitholders.