58. Alterations

Past version: effective from 18/04/2006 - 31/07/2006
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(1) Subject to Article 58(6):
(a) changes to a Fund's Constitution or Prospectus in respect of investment, borrowing or gearing powers may be made; or
(b) the Operator, a member of the Governing Body, or the auditor of a Fund may be replaced;
if an appropriate Special Resolution has been passed by the Unitholders at a meeting convened by the Unitholders solely for that purpose.
(2) Any other materially significant changes not falling within Article 58(1), that is, replacing a member of the Shari'a Supervisory Board or changes to the Constitution or Prospectus which may adversely affect Unitholders may be made in relation to a Fund if an appropriate ordinary resolution has been passed by a simple majority of the Unitholders at a meeting convened for that purpose.
(3) If the Operator considers on reasonable grounds that the change is not one that falls in Articles 58(1) or (2) and will not adversely affect Unitholders' rights, such change may be made by the Operator without recourse to the Unitholders other than to notify them after the change has been effected.
(4) The DFSA may prescribe by Rules further requirements in relation to the types of changes described in this Article and in regard to other alterations in respect of a Domestic Fund.
(5) The Operator of a Domestic Fund shall give notice in writing to the DFSA of any proposal specified in Article 58(1). Any such notice given to the DFSA shall be accompanied by a certificate signed by the Operator of the Fund and its legal advisors to the effect that the proposed change will not affect compliance with this Law or any Rules made under this law.
(6) Effect is not to be given to any proposal notified to the DFSA under Article 58(5) unless the DFSA has, by notice in writing, given its approval to the proposal.