Home / CY AIF Law of 2018 / PART ΙΙ: PROVISIONS REGARDING THE ALTERNATIVE INVESTMENT FUNDS / Chapter 10: Mergers / [95] Effects of the merger.

95. Effects of the merger.

(1) The realisation and effect of the merger referred to in paragraph (a) of the definition “merger” in article 85, shall have the following results:

(a) the assets of the merging AIF are transferred to the receiving AIF; and

(b) the unitholders of the merging AIF become unitholders of the receiving AIF and where applicable, they are entitled to a cash payment not exceeding 10% of the net asset value of the units they had in the merging AIF; and

(c) the merging AIF shall cease to exist when the merger is effected.

(2) The realisation and effect of the merger referred to in paragraph (b) of the definition “merger” in article 85, shall have the following results:

(a) the total of the assets and liabilities of the merging AIFs shall be transferred to the newly established receiving AIF; and

(b) the unitholders of the merging AIFs shall become unitholders of the newly established receiving AIF and where applicable, they are entitled to a cash payment not exceeding 10% of the net asset value of the units they had in the merging AIFs; and

(c) the merging AIFs shall cease to exist when the merger is effected.

(3) The realisation and effect of the merger referred to in paragraph (c) of the definition “merger” in article 85, shall have the following results:

(a) the net assets of the merging AIF shall be transferred to the receiving AIF;

(b) the unitholders of the merging AIF shall become unitholders of the receiving AIF; and

(c) the receiving AIF shall continue to exist until all its liabilities have been settled.

(4) The external manager of the receiving AIF shall confirm to the depositary of the receiving AIF, that the transfer of all assets and, where applicable, of all liabilities, has been completed. Where the receiving AIF operates in the form of an investment company and has not appointed an external manager, the AIF shall give the aforementioned confirmation to the depositary of the receiving AIF, where applicable.