ADVOKS GLOBAL · KENYA
The Capital Markets (Collective Investments Schemes) Regulations, 2023
152. Resolution to change incorporation documents (trust)
Edition: 2023-12-15 · In force
152. Resolution to change incorporation documents (trust)
(1)A statement of policy or set of investment objectives in the incorporation documents of the kind referred to in regulation 144 may not be changed without the approval of the Authority and an extraordinary resolution, and no significant departure may be made in the management of the scheme from that stated policy or set of investment objectives unless and until the departure has been approved by the Authority and an extraordinary resolution at a meeting of participants called for the purpose, and incorporation documents amended accordingly have been published.(2)Except where approved by an extraordinary resolution at a meeting of participants called for the purpose, a change to the incorporation documents relating to a proposal to treat all or any part of the fund manager’s periodic charge as a capital charge, may not be made; but this prohibition does not apply where—(a)the scheme concerned already has clear investment objectives indicating—(i)a greater preference for the generation of income than for capital growth; or(ii)equal emphasis on the generation of income and on capital growth; and(b)ninety days have elapsed since the participants were notified in writing by the fund manager of the change to the incorporation documents and of the date when it is to come into effect.(3)Any amendment to the incorporation documents to introduce a list, or to add an eligible market to the list, shall require approval of an extraordinary resolution at a meeting of participants unless—(a)the amendment is, in the context of the investment strategy of the scheme, of minimal significance only, and the trustee and the fund manager have so agreed in writing; or(b)the fund manager has—(i)given notice in writing of the intended amendment to the trustee and the participants;(ii)included in the incorporation documents the proposed date of commencement of the amendment; and(iii)before the amendment is relied upon, waited for ninety days to lapse since the amended incorporation documents became available.