ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investment Schemes) Regulations
104. Duty to ascertain liabilities
Edition: 2022-12-31 · In force
104. Duty to ascertain liabilities
(1)The fund manager shall have a duty to use all reasonable endeavours to ensure that all the liabilities of the collective investment scheme are discharged prior to the completion of the winding up.(2)The duty in subregulation (1) relates to all liabilities of the scheme of which—(a)the fund manager is, or becomes, aware prior to the completion of the winding up; or(b)the fund manager would have become aware of prior to the completion of the winding up had it used all reasonable endeavours to ascertain the liabilities of the collective investment scheme.(3)If the fund manager rejects any claim against the collective investment scheme in whole or part, the fund manager shall forthwith send to the claimant written notice of its reasons for doing so.(4)If after the effective time the fund manager becomes of the opinion that the collective investment scheme will be unable to meet all its liabilities within twelve months of the date of the statement provided under subregulation 3 (a) of Regulation 100—(a)the fund manager shall notify the trustee or board of directors as the case may be immediately; and(b)the trustee or board of directors as the case may be shall forthwith present a petition or cause the collective investment scheme to present a petition for the winding up in accordance with the provisions in the Companies Act (Cap. 486).