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 / [63] Dissolution and liquidation of an investment company.
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63.Dissolution and liquidation of an investment company.
(1) The investment company is dissolved and put into liquidation-
(a) in case the Securities and Exchange Commission withdraws its authorisation in accordance with article 64, or
(b) when the period of its operation provided in its instruments of incorporation lapses, unless the instruments of incorporation are amended before the end of the period of operation of the investment company, so that the period of its operation is extended or becomes indefinite, or
(c) with the occurrence of an event which, according to the instruments of incorporation of the investment company, constitutes a reason for its dissolution and liquidation, or
(d) in case of full redemption of its units;
(e) following a decision taken at its general meeting, including the cases of articles 62(1) and (2), or
(f) without prejudice to the case of an internally managed AIF which operates in the form of an investment company, when its external manager is dissolved, resigns, put into liquidation or the authorisation granted to the external manager is revoked, and a replacement is not appointed.
(2) Where the authorisation of an investment company is revoked, the Securities and Exchange Commission may submit to the Court an application for the liquidation of the investment company and the appointment of a liquidator or a temporary liquidator in accordance with the provisions of the Company Law.
(3) Where an investment company is put under liquidation, in addition to the provisions of this Law, the liquidation provisions of Part V of the Company Law shall also apply to the extent that they do not conflict with the provisions of this Law.
(4) In case the investment company is an umbrella AIF, its dissolution takes place when its last remaining investment compartment is dissolved.
(5) Where the investment company is under liquidation-
(a) the issue of new units is not possible, unless it serves the purpose of liquidation, and
(b) the redemption of units is still possible provided that the equal treatment of the unitholders is ensured.
(6)(a) The depositary of the investment company shall exercise its duties until the process of distribution of its assets finishes.
(b) The unitholders shall be satisfied from the liquidation proceeds when any kind of claim against the investment company is settled.
(7) The result of the distribution of the investment company’s assets shall be showed in a special report of an independent auditor, which is communicated to the Securities and Exchange Commission and to the competent authorities of the countries where the units of the investment company are marketed, while the relevant report shall be at the disposal of its unitholders at the points of marketing of its units:
It is provided that, the auditor of the investment company shall be considered independent for the purpose of application of this section.
(8) The dissolution of the investment company and the reasons for its dissolution are communicated, immediately, by the external manager to the depositary of the common fund, its unitholders and the Securities and Exchange Commission. The external manager shall submit to the Securities and Exchange Commission, without undue delay, a copy of the above mentioned communication to the unitholders and the depositary of the common fund.
(9) The Securities and Exchange Commission may, by means of a directive, specify any technical matter or detail regarding the application of this article.
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