UNIT HOLDER’S RIGHTS AND LIABILITIES
A unitholder is a person registered in the register as a holder of units or fractions of units in a fund which automatically accord him rights and interest in the fund.
Unit Holders’ Rights
The Unit of interest offered for subscription or purchase described in this Prospectus as a Unit, is a proportionate part of all Units of the Fund, which are invested in Permitted Investments as defined in the Deed.
As a Unit Holder of the Funds, and subject to the provisions of the Deed, an investor would have the right to:
- to receive distributions, if any, of that Fund;
- to participate in any increase in the NAV of Units of that Fund;
- to call for Unit Holders’ Meetings and to vote for the removal of the Trustee or the Manager through an extraordinary resolution;
- to exercise the cooling-off right (only for qualified investors);
- to receive annual and interim reports on that Fund; and
- to exercise such other rights and privileges as provided for in the Deed.
A Unit Holder would not, however, have the right to require the transfer to the Unit Holder of any of the investments of the Fund. Neither would a Unit Holder have the right to interfere with or to question the exercise by the Trustee (or the Manager on the Trustee’s behalf) of the rights of the Trustee as trustee of the investments of the Fund.
Investors are assigned with the rights after they have been registered in the Unit Holders’ Register. The registration takes effect from the date the Manager receives the application to purchase Units from investors together with the payment either by cash or cheque. The registration will be terminated later if the bank rejects the cheque. For EPF investment scheme, the registration takes effect from the date money is received by the Manager from EPF.
Investors applying for Units through the EPF scheme are subject to the terms and conditions imposed by the EPF.
Unit Holders’ Liabilities
No Unit Holder shall by reason of the provisions of the Deed and the relationship created hereby between the Unit Holder, the Trustee and the Manager be liable for any amount in excess of the selling price paid for the Units as determined pursuant to the Deed at the time the Units were purchased and any charges payable in relation thereto pursuant to the Deed and shall not be under any obligation to indemnify the Trustee and/or the Manager in the event that the liabilities incurred by the Trustee and the Manager in the name of or on behalf of the Trust pursuant to and/or in the Fund, and any right of indemnity of the Trustee and/or the Manager shall be limited to the recourse from the Fund.
