Collective Investment Schemes Control Act, 2002 (Act No. 45 of 2002)Part XI : Conversion of Collective Investment Scheme76. Definitions |
| (1) | In this Part, unless the context indicates otherwise— |
"applicable date"
in relation to a conversion of a collective investment scheme, means the date of the conversion;
"collective investment scheme"
includes one or more portfolios under such scheme and may, depending on the structure of the scheme, include a manager;
"conversion"
means a conversion of a collective investment scheme to any other format of a collective investment scheme permissible under this Act;
means a scheme regulating a conversion and governing the reciprocal rights and obligations of the parties to the conversion;
in relation to a collective investment scheme which is converted, means any participatory interest in such scheme which was issued before the applicable date.
| (2) | A conversion scheme must— |
| (a) | specify the basis, terms, conditions and cost of the conversion; |
| (b) | provide for the issue of participatory interests in a collective investment scheme established by the conversion; |
| (c) | provide for an offer, either to persons who immediately before the applicable date were investors with a qualifying interest in the collective investment scheme and to members of the public, to take up participatory interests in the collective investment scheme established by the conversion: Provided that participatory interests may be offered to members of the public to the extent to which they are not taken up by persons holding a qualifying interest in the collective investment scheme concerned immediately before the applicable date; |
| (d) | provide for payment of the value of the participatory interest of any investor who chooses not to take up a participatory interest in the collective investment scheme established by the conversion or who holds a qualifying interest of a lesser value than the value determined in the conversion scheme as the minimum for a qualifying interest. |