Article 94: Consent of Unitholders to Changes

Article 94: Consent of Unitholders to Changes

a. A fund manager must obtain the consent of unitholders in the relevant fund by way of an ordinary fund resolution on the following changes:

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

2) the change that has an impact on the risk level of the private fund;

3) the change that results in a material increase of the aggregate payments made out of the assets of the closed-ended private fund;

4) the change that will make a negative or material effect on the rights of unitholders in relation to the closed-ended private fund;

5) the change of the due date or maturity date of private fund.

6) Any other cases determined by the Authority from time to time and reported to the fund manager.

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 change mentioned in Subparagraph (5) of Paragraph (a) of this Article through a special fund resolution.

c. Details of changes referred to in this Article must be listed in the private fund’s reports made by the fund manager pursuant to Article (95) of these Regulations.

d. The fund manager must notify the Authority and the unitholders of the details of the changes referred to in Paragraph (a) of this Article, (10) days prior to the effective date of the change.

e. In case of an open-ended fund, unitholders may redeem their units before the date the changes referred to in Paragraph (a) of this Article are effective, without imposing redemption fees (if any).