PART 6FURTHER PROVISIONS RELATING TO AUTHORISED INVESTMENT FUNDS
CHAPTER 2AMALGAMATION OF AN AUTHORISED UNIT TRUST WITH, AND CONVERSION OF AN AUTHORISED UNIT TRUST TO, AN OPEN-ENDED INVESTMENT COMPANY
Circumstances in which this Chapter applies78
1
This Chapter applies if, in connection with a scheme of reorganisation, conditions A to E are met.
2
Condition A is that the whole of the scheme property of an authorised unit trust that is available for transfer is transferred on a given date under an arrangement to an open-ended investment company.
3
Condition B is that the consideration under the arrangement consists of or includes the issue, on the transfer date, of shares in the acquiring company to the holders of units in the target trust in exchange for those units.
4
Condition C is that the consideration shares are issued to the holders of units in proportion to their holdings of the exchanged units.
5
Condition D is that the consideration under the arrangement does not include anything else in addition to the issue of the consideration shares, other than (where applicable) the assumption or discharge by the acquiring company of liabilities of the trustees of the target trust.
6
Condition E is that under the arrangement all the units in the target trust are extinguished.
7
In this Chapter—
the “target trust” means the authorised unit trust mentioned in paragraph (2);
the “transfer date” means the given date mentioned in paragraph (2);
the “acquiring company” means the open-ended investment company mentioned in paragraph (2); and
“the whole of the scheme property of an authorised unit trust that is available for transfer” means the whole of the property subject to the trusts of the target trust, other than any property which is retained for the purpose of discharging liabilities of the trustees of the target trust;
the “consideration shares” means the shares in the acquiring company mentioned in paragraph (4); and
the “exchanged units” means the units in the target trust mentioned in paragraph (4).