Joint Investments in Trust Law, 5754-1994
חוק השקעות משותפות בנאמנות, תשנ"ד-1994
Published: 1994-08-23Consolidated Hebrew text as of 2026-01-01 · Last amended 2026-08-02✓ Amendment status checked against the Knesset legislation record on 2026-09-28
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Chapter VIII: Taxes
88.§
(Repealed — תיקון מס' 8, 2003)
89.§
(Repealed — תיקון מס' 8, 2003)
90.§
(Repealed — תיקון מס' 8, 2003)
91.§
(Repealed — תיקון מס' 8, 2003)
92.§
(Repealed — תיקון מס' 8, 2003)
93.§
(Repealed — תיקון מס' 8, 2003)
Exemption from Stamp Duty§
94.
A unit and its transfer are exempt from stamp duty.
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Contact Us →Chapter IX: General Provisions
95.§
(Repealed — תיקון מס' 16, 2010)
Holding through a Registration Company§
95a.
Units of a closed-ended fund shall be held through a registration company; however, the company shall not be regarded as the owner of the units held through it, and they shall be owned by the person in whose favour they are registered with the distributor.
Register of Units of a Closed-Ended Fund§
95b.
(a)A fund manager shall maintain, in respect of each closed-ended fund under their management, a register of units.
(b)The register of units shall record the name of the registration company through which the units are held and the quantity of units so held; if the units referred to include dormant units as defined in section 57(b), the number of dormant units shall also be recorded.
(c)The Minister of Finance may determine additional particulars, beyond those listed in subsection (b), to be included in the register of units.
(d)A closed-ended fund manager shall retain all records entered in the register of units under this section for at least seven years, and shall update any change in the records at the end of the day to which it relates.
(e)The register of units shall serve as prima facie evidence of the correctness of what is recorded in it.
Entitlement of a Registration Company to a Certificate§
95c.
A registration company is entitled to receive from a closed-ended fund manager a certificate attesting to the number of units registered in its name in the register of units.
Appearance of the Authority in Proceedings§
96.
Where civil proceedings to which a fund manager or trustee is a party are commenced in a court, the fund manager or trustee shall notify the Authority thereof in writing; where the Chairperson of the Authority considers that the interests of the unit holders are affected or are liable to be affected by the proceedings, they may appear in those proceedings and make submissions.
Supervision by the Authority§
97.
(a)In the performance of their duties under this Law, a fund manager and trustee shall be subject to the supervision of the Authority.
(b)The Authority may, for the purpose of supervision as referred to in subsection (a), issue directives concerning the modes of operation of a fund manager and trustee, of an office holder in them and of any person employed by them, all in order to ensure the proper management of the fund manager and the trustee and the protection of the interests of the unit holders and in order to support the stability of the financial system and its orderly operation; such directives may be issued to all fund managers and trustees or to a particular category thereof.
(b1)(Repealed).
(c)The Authority may, for the purpose of supervision as referred to in subsection (a), also authorise a person who is not an employee of the Authority to conduct an inspection of a corporation to which the provisions of this Law apply, and to demand documents and information relating to the business of the corporation that are required for the performance of its functions.
(d)A person authorised under subsection (c) shall not disclose the contents of any information or document that came into their possession by virtue of their function, except for the purpose of the inspection, or to the Chairperson of the Authority or to an employee of the Authority pursuant to a direction of the Chairperson of the Authority; nothing in this provision shall prevent disclosure in accordance with a demand of the Attorney General for the purposes of criminal proceedings or in accordance with a demand of the court.
Application of the Authority's Powers§
97a.
(a)In this Section –
"breach" – any of the following:
(1)a breach as defined in section 114;
(2)a breach as defined in section 119;
"offence" – any of the following:
(1)an offence under this Law;
(2)an offence under sections 284, 290, 291, 415, 423, 424, 424a and 425 of the Penal Law, 5737-1977, committed in connection with an offence under paragraph (1);
(3)an offence under sections 3 and 4 of the Prohibition on Money Laundering Law, 5760-2000, committed in connection with an offence under paragraphs (1) or (2);
(4)an offence under sections 240, 242, 244, 245 or 246 of the Penal Law, 5737-1977, committed in connection with an investigation or judicial proceeding in respect of an offence under paragraphs (1) to (3).
(b)
(1)In order to ensure the implementation of this Law, or where there was reasonable cause to believe that a breach has been committed or a suspicion arose of the commission of an offence, the Chairperson of the Authority or an employee of the Authority whom they have authorised in writing to do so may:
(a)demand from any person any information and document relating to the business of a fund manager or trustee or relating to the breach or offence referred to;
(b)enter, after having identified themselves, a premises where they have grounds to believe that the activity of a supervised entity, as defined in the Securities Law, which does not serve exclusively as a dwelling, is being carried on, and demand that documents as referred to in sub-paragraph (a) be delivered to them; however, a document may not be seized if it is sufficient to make do with a copy thereof;
(2)the provisions of section 56a(b) of the Securities Law shall apply in respect of the return of a document delivered to the Authority under paragraph (1).
(c)The provisions of sections 56a1 to 56e of the Securities Law shall apply with the necessary modifications and with the following modification: in section 56c2, instead of "paragraphs (3) or (4) of the definition of 'securities offence'" read "paragraphs (2) or (3) of the definition of 'offence' as defined in section 97a of the Joint Investments Law".
98.§
(Repealed — תיקון מס' 5, 1999)
Appointment of Auditor and Their Duties§
99.
(a)The trustee, in consultation with the fund manager, shall appoint an auditor for the fund within three months of the date of its establishment and shall pay their fee.
(b)Where the auditor becomes aware, in the course of performing their function, of a material breach or a continuing or recurring breach of a provision under this Law or of the fund agreement, on the part of the fund manager, they shall notify the trustee and the fund manager thereof in writing, and shall request the fund manager's response within the time limit set by them for that purpose; notwithstanding anything in any law or agreement, the auditor shall notify the Authority of such a breach, together with the fund manager's response, if received.
Internal Auditor§
99a.
(a)The provisions of sections 3(a), 4(b), 8, 9, 10 and 12 of the Internal Audit Law, 5752-1992, shall apply, with the necessary modifications, to the internal auditor appointed under section 18(5a).
(b)The internal auditor shall examine, inter alia, the propriety of the acts of the fund manager from the standpoint of compliance with the provisions of the law, proper business conduct and the procedures determined by the board of directors of the fund manager under section 18(8).
(c)The internal auditor shall report their findings to the Chairperson of the board of directors, to the audit committee, to the general manager and to the trustee.
Merger of Open-Ended Funds or Exchange-Traded Funds and Split of Open-Ended Funds§
100.
(a)A fund manager may merge open-ended funds under their management into a single open-ended fund, or merge exchange-traded funds under their management into a single exchange-traded fund, if in their opinion there is no impediment to carrying out the merger and the trustee is satisfied of this, after the merger plan has been approved by the trustee of each of the funds designated for merger; if a new fund is created as a result of the merger, a fund agreement shall be drawn up for it in accordance with the provisions of Section B of Chapter II; the provisions of Chapter III shall apply to the offer of its units to the public, and the validity of the fund agreements of the merged funds shall expire.
(b)In a merger of open-ended funds into a single open-ended fund, or of exchange-traded funds into a single exchange-traded fund, the fund manager shall transfer all the assets of the merging funds to the account of the single fund, and shall convert the units in the merging funds into units in the single fund, in such manner that the value of the units as defined in section 50(a)(2), after the merger, held by a person who held units of one or more of the merging funds on the eve of the merger, shall not change as a result of the merger, except for a change resulting from tax or payment of a debt applying to the merged funds or to the fund created as a result of the merger by reason of the merger; a fund manager may convert fractional units created as a result of the merger into cash.
(c)A fund manager may split an open-ended fund under their management into two or more open-ended funds if in their opinion there is no impediment to carrying out the split and the trustee is satisfied of this, after the split plan has been approved by the trustee; a fund agreement shall be drawn up for each fund created as a result of the split in accordance with the provisions of Section B of Chapter II; the provisions of Chapter III shall apply to the offer of its units to the public, and the validity of the fund agreement of the fund being split shall expire.
(d)In a split of an open-ended fund, the fund manager shall convert the units of the fund being split into units of the funds created as a result of the split, in such manner that a unit holder in the fund being split receives units in each of those funds in a proportion equal to their share of the total units held in the fund being split; the value of the units, as defined in section 50(a)(2), after the split, held by a person who held units of the fund being split on the eve of the split, shall not change as a result of the split, except for a change resulting from tax or payment of a debt applying to the funds created as a result of the split or to the fund being split by reason of the split; a fund manager may convert fractional units created as a result of the split into cash.
(e)The trustees of the merging funds shall supervise the merger, and the trustee of the fund being split shall supervise the split.
(f)
(1)No later than two weeks before the date of the merger or split, the fund manager shall submit to the Authority and to the exchange a report on the merger or split, as the case may be, its plan and its date;
(2)No later than the first business day after the merger of funds or the split of a fund, the fund manager shall submit to the Authority and to the exchange a report on the merger or the split, and shall publish the report in a newspaper.
(g)A fund manager and a distributor shall send the reports referred to in subsection (f) to the unit holders who hold units through them, in the manner prescribed in section 112a(b); a notice shall be attached to the report under subsection (f)(2) sent to a unit holder, and it shall state –
(1)the number of units held by the unit holder on the eve of the merger and the value of the units as defined in section 50(a)(2), and the number of units they hold in the fund after the merger and their value as aforesaid;
(2)the number of units held by the unit holder on the eve of the split and their value as aforesaid, and the number of units they hold in each of the funds after the split and their value as aforesaid.
Closed-Ended Fund Becoming an Open-Ended Fund§
101.
(a)(Repealed).
(b)The date on which a closed-ended fund becomes an open-ended fund shall not be earlier than thirty days from the date on which the fund manager submitted a report thereon to the Authority and to the exchange.
(c)A closed-ended fund shall not become an open-ended fund until its units have been delisted from trading on the exchange.
(d)Where a closed-ended fund has become an open-ended fund, the fund manager shall, no later than one business day after the day on which it became an open-ended fund, submit a report thereon to the Authority and to the exchange, and shall publish the report in a newspaper.
(e)A fund manager and a distributor shall send the reports referred to in subsections (b) and (d) to the unit holders who hold units through them, in the manner prescribed in section 112a(b).
Open-Ended Fund Becoming a Closed-Ended Fund§
102.
(a)An open-ended fund may become a closed-ended fund if a special resolution of the unit holders to that effect has been passed; where such a resolution has been passed, the fund manager shall apply to the court for approval of the implementation of the resolution, and the court shall grant its approval if it is satisfied that this will not harm the unit holders; where the court's approval has been given, the fund manager shall implement the special resolution.
(b)The fund manager shall submit to the Authority and to the exchange a report on the submission of the application to the court as referred to in subsection (a), and upon the granting of such approval shall transmit a copy thereof to them.
(c)The date on which an open-ended fund becomes a closed-ended fund shall not be earlier than one hundred and twenty days after the court's approval has been received.
(d)Where an open-ended fund has become a closed-ended fund, the provisions of section 101(d) shall apply with the necessary modifications.
(e)Notwithstanding the provisions of subsections (a) to (d), a tracking fund that is an open-ended fund may become an exchange-traded fund even if the conditions referred to in those subsections are not met, if the fund manager has so decided and all of the following are fulfilled:
(1)the fund manager has published a prospectus regarding the change of type of the fund, the publication of which the Authority has permitted; the prospectus shall include every detail that the Authority has determined should be included in it;
(2)the fund manager has submitted a report on the change to the Authority and to the exchange, in the manner determined by the Authority; the report shall include every detail that the Authority has determined should be included in it;
(3)the fund manager and the distributor have sent the report referred to in paragraph (2) to the unit holders who hold units through them, in the manner prescribed in section 112a(b).
(f)The date on which a tracking fund that is an open-ended fund becomes an exchange-traded fund under the provisions of subsection (e) shall not be earlier than the expiry of 14 days from the date on which the fund manager submitted the report referred to in subsection (e)(2).
Grounds for Winding Up a Fund§
103.
The winding up of a fund shall take place in one of the following:
(1)the period of existence of the fund as determined in the fund agreement has ended (hereinafter – expiry of the fund's period);
(2)a resolution to wind up the fund has been passed in accordance with the provisions of the fund agreement;
(3)a special resolution has been passed at a general meeting of the unit holders of a closed-ended fund that is not an exchange-traded fund, for its winding up, unless otherwise provided in a provision under this Law;
(4)the board of directors of the exchange has decided to delist the units of a closed-ended fund from trading on the exchange, and if an appeal against the decision has been lodged, it has been upheld in a final judgment.
Application for Winding Up a Fund§
104.
(a)Where the Authority is of the opinion, after having given the fund manager and the trustee an adequate opportunity to present their arguments, that circumstances have occurred in which the interests of the unit holders require the winding up of the fund, it may submit to the court an application for its winding up.
(b)At least five unit holders holding at least ten percent of all the units of a closed-ended fund may submit to the court an application for its winding up.
(c)
(1)Where applications for the winding up of a fund have been submitted as referred to in subsections (a) or (b), the respondents therein shall be the fund manager and the trustee;
(2)any unit holder may appear in the proceedings and make submissions;
(3)the fund manager shall publish notice of the submission of the application in a newspaper immediately after it has been served on them.
(d)Where applications for the winding up of a fund have been submitted as referred to in subsections (a) or (b), the court may do any of the following, as it sees fit in the interests of the unit holders:
(1)order an arrangement that will ensure the continued operation of the fund for a period and in a form that it shall determine;
(2)order the transfer of management of the fund to another fund manager and determine the terms of the transfer and the consideration therefor;
(3)dismiss the application for winding up;
(4)make a winding-up order;
(5)make such other order as it sees fit.
Winding Up or Merger of a Fund with a Low Net Asset Value§
104a.
(a)If the net asset value of the fund's assets falls below half of the minimum value fixed under section 46(g), for a period of 90 consecutive days or for 120 days within a period of 180 days, the fund manager shall wind up the fund, or merge it with another fund under its management into a single fund in such a manner that the asset value of the single fund exceeds half of the minimum value; the fund manager shall notify the unit holders of its decision to wind up or to merge the fund, as the case may be, within seven days of the end of the said period, as the case may be.
(b)Notwithstanding the provisions of subsection (a), the fund manager may continue to manage the fund, provided that the fund has met all of the following conditions:
(1)the rate of the fund manager's fee shall not exceed the average rate of the fund manager's fees in all funds of the same type under the management of the fund manager, and the rate of the trustee's fee shall not exceed the average rate of the trustee's fees in all funds of the same type under the management of the fund manager for which it serves as trustee; for this purpose, "type" – a type of fund determined by the Minister of Finance under section 82;
(2)the period during which the net asset value of the fund's assets is below half of the minimum value fixed under section 46(g) did not exceed 120 consecutive days and did not exceed 150 days within a period of 210 days.
(c)The Chairperson of the Authority or an employee authorised by the Chairperson for that purpose may, upon the application of the fund manager and the trustee, extend, for reasons that shall be recorded, the periods fixed in subsection (a).
(d)Where the circumstances set out in subsection (a) have occurred, the fund manager shall bear from its own resources the excess expenses deducted from the fund's assets up to the date of the winding up or merger, as the case may be; in this subsection, "excess expenses" – expenses charged to the fund's assets under section 80 by reason of the fund having a low net asset value.
(e)This section shall apply to a fund after one year from the day on which its units were first offered to the public, and in respect of a tracker fund that is an open-ended fund that became an exchange-traded fund under section 102(e) – after one year from the day on which it became an exchange-traded fund as aforesaid, or from the day on which a material change in the fund's investment policy as defined in section 61(b1) was made; this section shall not apply to a tracker fund whose investment policy provides that its purpose is to achieve results that are in negative correlation to the rates of change in the price of an index or commodity.
Fund Liquidator – Remuneration and Qualifications§
105.
(a)The fund manager shall serve as liquidator of the fund; however, if a court has issued an Order under section 104(a), it shall appoint the trustee as liquidator of the fund, unless it finds that there are reasons justifying the appointment of another liquidator.
(a1)The remuneration of the fund liquidator shall be charged to the fund's assets.
(a2)The rate of remuneration of a fund liquidator who is the fund manager or the trustee, during the winding-up period, shall not exceed the rate of remuneration paid to the fund manager during the twelve months preceding the commencement of the winding up, multiplied by the ratio between the winding-up period and twelve months; in this subsection, "rate of remuneration" – the amount of remuneration divided by the average net asset value of the fund's assets during the period for which the remuneration was paid; for this purpose, the said average net asset value shall be calculated according to the daily net asset value of the fund's assets on each of the trading days during the period for which the remuneration was paid.
(b)The Minister of Finance may prescribe by Regulations, generally or for types of funds, the maximum remuneration to be paid to a liquidator who is not the fund manager or the trustee.
(c)The expenses of the winding up, excluding commissions on the sale of the fund's assets, shall be paid out of the liquidator's remuneration; commissions on the sale of the fund's assets shall be charged to the fund's assets.
(d)A court shall not appoint a liquidator for a fund who is not the trustee, unless all of the following conditions are met in respect of that person:
(1)the person is a member of the Israel Bar Association or holds a licence to practise accountancy in Israel, or has the professional training required in the opinion of the court for that position;
(2)the person has sufficient experience, in the opinion of the court, for the purpose of performing the function of liquidator;
(3)the person's occupations or connections with the fund manager, or with a company that controls the fund manager, or with a company controlled by such a company, are not such as to create a conflict of interests with the performance of the function.
Notice of Winding Up of a Fund§
106.
(a)The liquidator shall notify the unit holders, the trustee, the Authority and the exchange of the winding up of a fund, and shall publish the notice in a newspaper, not earlier than sixty days and not later than thirty days before the date of the winding up.
(a1)The offering of units of an open-ended fund shall cease as from the first price calculation day following the date on which the notice is sent to the Authority as referred to in subsection (a).
(a2)Notwithstanding the provisions of section 61, during the period of realisation of the fund's assets as referred to in section 109(a), the fund manager may deviate from the fund's investment policy as set out in the fund contract and in the prospectus or report, by reason of the realisation of the fund's assets.
(b)The fund liquidator shall send the notice under subsection (a) to unit holders who hold units through the fund manager, and shall notify the distributor through whom units are held, by a written notice addressed to that distributor, that it is required to send the notice to the unit holders; a distributor that has received such a notice shall send it, immediately upon receipt, to the unit holders who hold units through it; the notice shall be sent to the last known addresses of the recipients at that time, and shall include, inter alia, the grounds for the winding up, the date of the winding up, the name of the liquidator and the liquidator's remuneration, a statement of the fact that the offering of units in an open-ended fund shall cease as from the date of dispatch of the notice, a statement of the fund manager's right to deviate from the fund's investment policy by reason of the realisation of the fund's assets, and where the fund's books will be kept after the winding up.
(c)Not later than thirty days before the date of the winding up, the manager of a closed-ended fund shall apply to the board of directors of the exchange to delist the units from trading; the units shall not be delisted until thirty days have elapsed from the date of the application.
Date of Winding Up of a Fund§
107.
(a)If a court has issued an Order for the winding up of a fund, it shall fix a date for the winding up, provided that such date shall not be earlier than thirty days after the making of the Order.
(b)The date of winding up of a fund otherwise than pursuant to a court Order shall be –
(1)in a winding up under section 103(1) – the end of the period of existence of the fund as fixed in the fund contract;
(2)in a winding up under section 103(2) – the date fixed in the decision in accordance with the provisions of the fund contract, or the end of thirty days from the giving of a notice as referred to in section 106, whichever is the later;
(3)in a winding up under section 103(3) – not later than the end of three months from the day on which the decision was passed at the general meeting;
(4)in a winding up under section 103(4) – the day on which the units of a closed-ended fund are delisted from trading on the exchange;
(5)(Repealed);
(6)in a winding up under section 104a – at the end of a period not exceeding ninety days from the dispatch of a notice to the Authority as referred to in section 106.
Regulations regarding Winding Up of an Exchange-Traded Fund§
107a.
The Minister of Finance may prescribe that the dates for giving notice of the winding up of an exchange-traded fund and the dates for the winding up of the exchange-traded fund shall be earlier than the dates fixed in sections 106 and 107(b), and may also prescribe additional provisions regarding the winding up of such a fund.
Miscellaneous Provisions regarding Winding Up of a Fund§
108.
(a)The duties of the trustee and the fund manager shall continue to apply, with the necessary modifications, during the period of winding up of a fund by the fund manager.
(b)Where a liquidator who is not the fund manager has been appointed –
(1)the fund's assets and all powers necessary for the purpose of its winding up shall be conveyed to the liquidator;
(2)from the date of appointment of the liquidator, the duties, powers and responsibilities of the fund manager and the trustee in relation to the fund shall cease, and the payment of their remuneration shall cease, unless the court has determined otherwise;
(3)(Repealed).
(c)The court may appoint a liquidator in place of a liquidator who has resigned.
(d)Without prejudice to the powers of the court, it may, upon the application of at least five unit holders holding at least five percent of all the units –
(1)give any direction in the matter of the winding up of the fund;
(2)remove a liquidator from office and appoint a liquidator in that person's place if it has found that the interests of the unit holders are likely to be harmed.
(e)A fund liquidator shall redeem the units of the fund on the date of the winding up.
Realisation of Fund Assets in Winding Up§
109.
(a)The realisation of the assets of a fund for the purpose of its winding up shall be carried out in the manner and within the period that the liquidator considers beneficial for the protection of the rights of the unit holders, provided that the realisation of the assets shall be completed by the date of the winding up.
(b)The provisions of sections 276, 288 to 291 and 310 to 312 of the Companies Ordinance shall apply to the winding up of a fund, with the necessary modifications.
(c)The fund manager shall submit a winding-up plan for the approval of the trustee not later than one week after the dispatch of the notice to the Authority as referred to in section 106; if the trustee has approved the winding-up plan, the fund manager shall submit it to the Authority; the winding-up plan shall not be open for public inspection.
(d)If cash remains in the possession of the liquidator after the date of the winding up, the liquidator shall deal with it as directed by the trustee in consultation with the Chairperson of the Authority or an employee authorised by the Chairperson for that purpose; if liabilities remain in the possession of the liquidator in an amount exceeding the cash in the fund, the liquidator shall bear the difference from its own resources.
(e)The Minister of Finance may prescribe other dates and additional provisions regarding the realisation of fund assets that are not listed for trading on the exchange, generally, in respect of a high-technology fund, or in respect of other types of funds.
Completion of Winding Up§
110.
Immediately after the winding up of the fund and the realisation of its assets as referred to in section 109 –
(1)the liquidator shall submit to the Authority and to the exchange a report on the realisation of the fund's assets that remained after the date of the winding up, on what was done with the cash or liabilities as referred to in section 109(d), and on the expenses of the winding up;
(2)the fund contract shall expire;
(3)the fund's books shall be kept for a period of seven years from the end of the winding up.
General Meeting§
111.
(a)
(1)A fund manager may convene a general meeting of the unit holders;
(2)the trustee, or at least five unit holders holding not less than twenty percent of the number of units, or with the approval of the trustee – at least five unit holders holding not less than five percent of the number of units, may demand that the fund manager convene a general meeting of the unit holders; the fund manager shall convene the meeting not later than twenty-one days from the day on which the demand was submitted;
(3)if the fund manager has not convened a meeting within the period referred to in paragraph (2), the person who demanded the convening, but not fewer than five unit holders as referred to in paragraph (2), may convene the meeting themselves, provided that it takes place before the end of three months from the day on which the demand was submitted; the fund manager shall pay from its own resources to the conveners of the meeting the reasonable expenses they incurred in convening it.
(b)(Repealed).
(c)The quorum at a general meeting for the passing of a special resolution under sections 102(a) and 103(3) shall be at least one hundred unit holders holding not less than fifty percent of the number of units, and at an adjourned meeting at least fifty unit holders holding not less than twenty-five percent of the number of units.
(d)If the total number of unit holders is less than the quorum under subsection (c), the quorum at a general meeting for the passing of a special resolution shall be –
(1)(Repealed);
(2)for the purposes of sections 102(a) and 103(3) – at least fifty percent of all the unit holders holding not less than fifty percent of the number of units, and at an adjourned meeting at least twenty-five percent of all the unit holders holding not less than twenty-five percent of the number of units.
(e)For the purposes of this section, "unit holder" – a person who holds a confirmation from a member of the exchange regarding the holding of units through that member, or a person registered as a unit holder in the unit register maintained by the fund manager; a unit holder who has redeemed or sold units after receiving the confirmation and before the date of the general meeting –
(1)shall notify the meeting of this fact upon the opening of the meeting;
(2)the member of the exchange who gave the confirmation shall notify the trustee of the redemption or sale of the units, and the trustee shall notify the meeting accordingly.
(f)Each unit confers one vote in a vote.
(g)Units held by a person who controls a fund manager, an employee of a fund manager, an office holder of the fund manager, a person employed by a fund manager in the management of the fund's investment portfolio, an employee of a person so employed, and a corporation controlled by any of the foregoing, shall not confer a right to vote.
(h)The trustee shall participate in general meetings of the unit holders but shall have no right to vote.
(i)The provisions of the Companies Law, 5759-1999 regarding general meetings shall apply to general meetings of unit holders, with the necessary modifications, unless otherwise provided in this Law.
(j)The Minister of Finance may prescribe by Regulations a different number of unit holders constituting a quorum under this section.
Notice of Convening of a Meeting§
112.
(a)A fund manager shall publish in a newspaper a notice of the convening of a meeting of unit holders for the passing of a special resolution under sections 102 and 103(3), and shall forward a copy thereof to the distributor, to the trustee and to the Authority; the fund manager shall send the notice to the unit holders who hold units through it, at their last known addresses at that time, and shall notify the distributor through whom units are held, by a written notice addressed to that distributor, that it is required to send the notice to the unit holders; a distributor shall send the notice to the unit holders who hold units through it, at their last known addresses at that time, immediately after the fund manager has notified it as aforesaid; a notice of the convening of a meeting of unit holders of a closed-ended fund shall also be sent to the exchange.
(b)The newspaper publication and the notice to be sent as referred to in subsection (a) shall specify the date of the meeting, its venue, and details of the matter for which it is being convened; the notice shall also include a summary of the resolution whose approval is being sought, the planned date for its implementation, an explanation of the request for the resolution, and the quorum required for its approval.
(c)The date of the meeting shall be not earlier than seven days after the day of publication in the newspaper and not later than fourteen days after that day.
(d)Not later than the second business day after the passing of a special resolution, a fund manager shall submit a report to the Authority and to the exchange, and shall publish in a newspaper the resolution approved at the meeting and the planned date for its implementation.
(e)A notice to unit holders of the convening of a general meeting otherwise than under subsection (a) shall be published in a newspaper by the fund manager, and shall specify the date of the meeting, its venue, and details of the matter for which it is being convened; the fund manager shall forward a copy of the notice to the trustee and to the Authority.
Notice of Transfer of Management of a Fund§
112a.
(a)A fund manager shall submit to the Authority, to the exchange and to the distributor a report on the transfer of a fund under its management to management by another fund manager, and on the appointment of a person who is not an employee of the fund manager to manage the investment portfolio of a fund under its management, in whole or in part, or on the termination of engagement with such a person, and shall publish in a newspaper a report on the transfer of a fund under its management to management by another fund manager or on the appointment of another company to manage the investment portfolio of a fund under its management.
(b)The fund manager shall send the report on the transfer of a fund under its management to management by another fund manager or on the appointment of another company to manage the investment portfolio of a fund under its management to the unit holders who hold units through it, at their last known addresses at that time, and shall notify the distributor through whom units are held, by a written notice addressed to that distributor, that it is required to send the report to the unit holders; a distributor shall send the report to the unit holders who hold units through it, at their last known addresses at that time, immediately after the fund manager has notified it as aforesaid.
(c)The Minister of Finance shall prescribe the particulars to be included in the report under this section and the dates of its submission and publication.
Notice of Change of Name of a Fund Manager or Change of Name of a Fund§
112b.
(a)A fund manager shall submit to the Authority and to the exchange a report on a change of its name or a change of the name of a fund under its management.
(b)The fund manager shall send the report referred to in subsection (a) to the unit holders who hold units through it, at their last known addresses at that time, and shall notify the distributor through whom units are held, by a written notice addressed to that distributor, that it is required to send the report to the unit holders; a distributor that has received such a notice shall send the report, immediately upon receipt of the notice, to the unit holders who hold units through it, at their last known addresses at that time.
Validity of a Transaction§
113.
A transaction in the assets of a fund shall not be void solely because its execution constitutes an offence against the provisions of this Law.
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