Home / CY AIF Law of 2018 / PART ΙΙ: PROVISIONS REGARDING THE ALTERNATIVE INVESTMENT FUNDS / Chapter 8: Special provisions / Part 2 - Fixed or variable capital investment companies / [60] Amendments to the instruments of incorporation of an investment company.
Embedded Files
60. Amendments to the instruments of incorporation of an investment company.
(1) In case of an internally managed AIF which operates in the form of an investment company in accordance with article 6(2)(a), excluding an AIFM which is an internally managed AIF, or in case of an externally managed AIF which operates in the form of an investment company in accordance with article 6(2)(b)-
(a) any amendment to the instruments of incorporation of the investment company is valid only if it is approved by the Securities and Exchange Commission:
It is provided that, the approval is granted after ensuring the legality of the amendment and whether sufficient consideration has been made to protect its unitholders, and
(b) the valid amendments of the instruments of incorporation shall be communicated immediately by the external manager of the AIF to the unitholders of the investment company, which they shall bind.
It is provided that, the provisions of this section shall apply to AIFLNPs as if the reference to article 6(2) is a reference to article 125(1).
(2) In case the investment company is of the open-ended type, its unitholders have the right to request the redemption or repurchase of their units in accordance with the provisions of its instruments of incorporation prior to their amendment,
(a) within ten (10) calendar days from the notification of the amendment to them, where the redemption or repurchase of units takes place on a daily basis;
(b) within one (1) month from the notification of the amendment to them, where the redemption or repurchase of units takes place, at least, weekly;
(c) by the date at which the one after the next scheduled date of redemption or repurchase of units shall take place, where the redemption or repurchase takes place on a monthly basis; and
(d) by the next scheduled redemption or repurchase date, in every other case, on the condition that between the notification of the amendment to the unitholders and the expiry of the right of redemption or repurchase of their units according to the provisions of the rules prior the amendment, there is a time period of, at least, thirty (30) days.
(3) In case the investment company is of the closed-ended type, the unitholders have the right to request the redemption or repurchase of their units in accordance with the provisions of the instruments of incorporation prior to their amendment, within three (3) months from the date of the notification of the amendment to them.
(4) In case of an AIFM, which is an internally managed AIF, the amendment of its instruments of incorporation shall be done in accordance with article 10 of the Alternative Investment Fund Managers Law and its unitholders shall be informed in accordance with paragraph (b) of section (1).
Page updated
Report abuse