CMA LAW: Provisions of Unit Holders Assembly of InvestmentFunds

Awareness Announcement

"Provisions of Unit Holders' Assembly of Investment Funds"

Kuwait on: October 11, 2015

In line with CMA's endeavour to enhance investment and legal awareness of all parties related to securities activities and of investors in investment funds in particular, the CMA urges all investment funds' unit holders to observe the provisions of their Assemblies.

The CMA draws the attention of all investors to the fact that the unit holders' Assembly is the highest authority in the Investment fund. It comprises of all the unit holders, and it is authorized to conduct important tasks such as assigning the fund's Board of Directors and External Sharia Audit Office and looking into assigning a manager or liquidator to the fund. It is also authorized to make the decision of terminating the fund before the end of the period assigned in its Articles of Association. The fund's manager has to obtain the unit holders' and the CMA's approval when deciding to terminate the fund.

Owners of less than 10% of fund's units may request the fund's Board of Directors to hold an assembly to discuss assigning an alternative manager or liquidator. The assembly, after the voting of the unit holders who represent 50% of the fund's capital, may request the appointment of an alternative manager or may liquidate the fund in the cases specified in the Executive Bylaws of the CMA's Law. In such cases, the CMA may appoint an alternative manager or fund liquidator or take any decision it deems appropriate.

Based on the above mentioned considerations, the CMA urges all investors in funds, or those who are willing to do so, of the importance of knowing about the different data and information included in the required documents of the funds such as Articles of Association and prospectus, in addition to the provisions of the unit holders assembly in order to protect their rights and investments.

Traders and licensed persons can visit CMA website (www.cma.gov.kw), KSE website (www.kse.com.kw), and the Twitter account @cma_kwt to keep up with the Authority's latest awareness announcements.

Disclaimer: The information provided on this page is for reference purposes only, visitors are encouraged to review and understand the information provided in the official scanned document attached in the link above (if available). The CMA endeavors to ensure that the information on this page is complete and accurate, but the CMA does not guarantee the quality, accuracy, or completeness of any content at any time. In the event the information on this page is different from the content in the official scanned document attached in the link (if available), the official scanned document attached shall take precedence.