Singapore legislation
Schedule 1
Schedule 1
Authorised Unit Trust Schemes
FIRST SCHEDULE(Section 3).Authorised Unit Trust SchemesPart IPower of Minister to Make Order Declaring A Unit Trust Scheme to be An Authorised Unit Trust Scheme
1. The Minister may by order declare to be an authorised unit trust scheme for the purposes of this Act any unit trust scheme in relation to which the Minister is satisfied that the following conditions are fulfilled, that is to say: —
that each of the persons who are respectively the manager and the trustee under the scheme is a corporation incorporated under the law of Singapore or of some part of Malaysia, and having a place of business in Singapore at which notices and other documents are received on behalf of the corporation; and
that the scheme is such that the effective control over the affairs of the corporation which is the manager under the scheme is and will be exercised independently of the corporation which is the trustee under the scheme; and
that the scheme is such as to secure that any trust created in pursuance of the scheme is expressed in a deed providing, to the satisfaction of the Minister, for the matters specified in Part II of this Schedule; and
as respects the corporation being the trustee, either —
that the corporation has a capital (in stock or shares) for the time being issued of not less than five million Malayan dollars, of which an amount of not less than two million and five hundred thousand Malayan dollars has been paid up, and that the assets of the corporation are sufficient to meet its liabilities (including liabilities in respect of the repayment of its capital); or
that more than four-fifths of the said capital of the corporation is held by another corporation being a corporation in relation to which the conditions as to capital and assets specified in sub-paragraph (d)(i) of this paragraph are fulfilled:Provided that, if with respect to any trust the Minister is satisfied that, by reason of the special circumstances of the trust, the fulfilment in relation thereto of the condition specified in sub-paragraph (c) of this paragraph is impracticable, the Minister may dispense with the fulfilment of that condition in relation to that trust, so far as it appears to him that he can properly do so without prejudicing the interests of the beneficiaries.
2. If, with respect to any authorised unit trust scheme, the Minister considers that the order declaring the scheme to be an authorised unit trust scheme ought to be revoked on either of the following grounds, that is to say: —
that the conditions specified in sub-paragraphs (a) to (d) of paragraph 1 of this Part are no longer fulfilled in the case of that scheme; or
that the circumstances relevant to the making of an order have materially changed since the making thereof,the Minister may serve on the manager under the scheme and on the trustee under the scheme a written notice that he is considering the revocation of the order on that ground, specifying the respect in which the said conditions are no longer fulfilled or the said circumstances have changed, as the case may be, and inviting the manager and the trustee to make to the Minister, within the period of one month from the date of the service of the notice, any representations which they desire to make with respect to the proposed revocation of the order; and the Minister may revoke the order after the expiration of the said period, but, before deciding whether or not to revoke the order, shall take into consideration any representations so made by the manager or trustee and, if he so requests, afford him an opportunity of being heard by the Minister within that period.
3. The Minister shall, not less often than once a year, cause particulars of every unit trust scheme which is for the time being an authorised unit trust scheme, to be published in such manner as he thinks proper.Part IIMatters for Which Trust Deeds Pursuant to Unit Trust Schemes Must Provide
1. For determining the manner in which the manager’s prices for units on a sale and a purchase respectively, and the yield from the units, are to be respectively calculated, and for entitling the holder of any units to require the manager to purchase them at a price calculated accordingly.
2. For regulating the mode of execution and the issue of unit certificates, and, in particular, for securing that no unit certificate shall be executed or issued in respect of rights or interests in any property until steps have been taken, to the satisfaction of the trustee, to secure that the property will be vested in him or, subject to any prescribed conditions, in a nominee for him approved by the Minister.
3. For prohibiting or restricting the issue by or on behalf of the manager of advertisements, circulars, or other documents containing any statement with respect to the sale price of units, or the payments or other benefits received or likely to be received by holders of units, or containing any invitation to buy units, unless the document in question also contains a statement of the yield from the units.
4. For securing that any advertisement, circular or other document containing any statement with respect to the sale price of units or the yield therefrom, or containing any invitation to buy units, shall not be issued by or on behalf of the manager until the trustee has had a reasonable opportunity of considering the terms of the document, and shall not be so issued if, within a reasonable time after the document first comes under his consideration, he notifies his disapproval of the terms thereof in writing to the manager.
5. For the establishment of a fund to be applied in defraying the expenses of the administration of the trust and for regulating the application of that fund.
6. For the audit, and the circulation to holders of units, of accounts relating to the trust (including accounts of the manager in relation to the trust and statements of his remuneration in connection therewith).
7. For requiring the manager (subject to any provisions as to appeal contained in the deed) to retire from the trust if the trustee certifies that it is in the interest of the beneficiaries under the trust that he should do so.In this Part the expression “Units” means securities (described whether as units or otherwise) which may be created in pursuance of the unit trust scheme, and the expression “unit certificates” means certificates of the acquisition of such securities.Part IIIInvestigation on the Administration of Unit Trust Scheme by Inspectors Appointed by Minister
1. The Minister may appoint one or more competent inspectors to investigate and report on the administration of any unit trust scheme, if it appears to the Minister —
that it is in the interests of unit holders so to do; and
that the matter is one of public concern.
2. The provisions contained in subsections (3), (4), (5) and (6) of section 138 of the Companies Ordinance (Cap. 174) shall apply in relation to an inspector appointed under this section as they apply in relation to an inspector appointed under subsection (1) of the aforesaid section of the Companies Ordinance, but with the substitution for references to the company or other body corporate and its affairs of references to the manager under the scheme and to the administration of the scheme.
3. The expenses of any investigation under this Part shall be defrayed by the unit trust scheme investigated upon.