Article 17. Creation of a mutual investment fund of the Law on Investment and Venture Funds

Home / RLA / Article 17. Creation of a mutual investment fund of the Law on Investment and Venture Funds

1. The decision to establish a mutual investment fund is made by the board of directors of the fund's management company, unless its articles of association place this issue within the exclusive competence of the general meeting of shareholders of the management company.

The Board of Directors of the management company of a mutual investment fund, unless otherwise established by its charter, also makes decisions on approving the rules of the mutual investment fund, making amendments and additions to them.

2. The management company has the right to create several open, interval or closed mutual funds.

Mutual funds of the same type, created by the same management company, should differ in investment declarations.

3. The management company may not be a holder of shares of those investment funds, the functioning of which it ensures in accordance with the concluded agreements.

The custodian, the auditing organization and the appraiser cannot be holders of shares of those mutual investment funds, the functioning of which they ensure in accordance with the concluded agreements.

The requirement of the first part of this paragraph does not apply to cases when a management company becomes a holder of shares of a fund managed by it as part of its function as a market maker (if the management company combines investment portfolio management with brokerage and (or) dealer activities). At the same time, the number of shares held by this management company should be less than ten percent of the number of all placed shares (with the exception of repurchased shares) of the fund managed by it.

The Law of the Republic of Kazakhstan dated July 7, 2004 No. 576.

This Law defines the legal status, specifics of the creation, operation, reorganization and liquidation of a joint-stock investment fund, the conditions and procedure for the creation, operation and termination of a mutual investment fund, the specifics of the legal status and activities of venture funds in the Republic of Kazakhstan, regulates relations related to the activities of professional securities market participants to ensure the functioning of investment funds, and It also defines the procedure for state regulation of investment funds.

President

Republic of Kazakhstan

Constitution Law Code Standard Decree Order Decision Resolution Lawyer Almaty Lawyer Legal service Legal advice Civil Criminal Administrative cases Disputes Defense Arbitration Law Company Kazakhstan Law Firm Court Cases