Article 64: Approval of the Authority and Consent of Unitholders to Fundamental

Article 64: Approval of the Authority and Consent of Unitholders to Fundamental

Changes

a. A fund manager must obtain the consent of the unitholders in the relevant fund to the proposed fundamental change by way of an ordinary fund resolution.

b. As an exception to Paragraph (a) of this Article, the fund manager must obtain the approval of the unitholders in the concerned fund for the proposed fundamental change mentioned in Subparagraph (9) of Paragraph (d) of this Article through a special fund resolution.

c. A fund manager, having obtained the approval of the unitholders specified in Paragraphs

(a) and (b) of this Article, must obtain the consent of the Authority in the relevant fund to the proposed fundamental change.

d. For the purposes of these Regulations, “fundamental change” means:

1) a change which significantly changes the purposes, nature or class of the public fund;

2) a change which may have a material adverse effect on the unitholders or their rights in relation to the closed-ended public fund;

3) a change which alters the risk profile of the public fund; or

4) the voluntary withdrawal of a fund manager from its position as the fund manager.

5) would reasonably be expected to cause the unitholders to reconsider their participation in the closed-ended public fund;

6) results in any increased payments out of the assets of the closed-ended public fund to a fund manager or any member of the fund board or an affiliate of either;

7) introduces any new type of payment out of the assets of the closed-ended public fund;

8) materially increases other types of payment out of the assets of the closed-ended public fund.

9) change in the eligibility date or the termination of the closed-ended public fund.

10) increase the total value of the closed-ended public fund’s assets by accepting cash or in-kind contributions, or both.

11) any other instances determined by the Authority from time to time and reported to the fund manager.

e. The fund manager must obtain the fund board approval before carrying out any fundamental change.

f. The fund manager must notify the unitholders and disclose details of fundamental changes on its website and any other website available to the public according to the controls set out by the Authority (10) days before of the date in which the change becomes effective.

g. Details of all fundamental changes must be included in the next fund report prepared by the fund manager pursuant to Article (78) of these Regulations.

h. The unitholders of an open-ended public fund have the right to redeem their units before any fundamental changes are effective; without incurring any redemption fees )if any(.

i. The traded funds shall be exempted from the requirement to notify unitholders in writing, stipulated in Paragraph (f) of this Article. Provided that the announcement of such shall be made on the fund manager’s website and the Exchange’s website.