ADVOKS GLOBAL · KENYA
The Capital Markets (Alternative Investment Funds) Regulations
24. Winding up of an alternative investment fund
Edition: 2023-12-15 · In force
24. Winding up of an alternative investment fund
(1)A scheme set up as either a trust, limited liability partnership or company may be wound up by the fund manager—(a)where the Authority revokes the approval of the alternative investment fund;(b)where the fund manager or the trustee or custodian requests for the revocation of the Authority’s approval of the scheme; or(c)upon the expiration of the tenure of the fund;(d)if it is the opinion of the fund manager or trustee, as the case may be, that the fund be wound up in the interests of participants;(e)if seventy five percent of the participants by value of their investment in the fund pass a resolution at a meeting of participants that the fund be wound up; or(f)if the Authority so directs in the interests of participants.(2)Upon the occurrence of any of the events specified in this regulation, the fund manager shall proceed to wind up the fund in accordance with regulation 23 on the manner of winding up.(3)The fund manager shall advise the Authority and participants of the circumstances leading to the winding up of the fund where applicable.(4)On and from the date of advice under subregulation (3) no further pooling of funds for investments shall be made on behalf of the fund that has been wound up.(5)The fund manager shall within one year from the date of the advice on winding up, liquidate the assets of the fund and distribute proceeds accruing to the participants after paying all liabilities.(6)The Authority may extend the duration for winding up the fund under upon request by the fund manager.