Shan CapIW) R_Ho .. , ....

LN. 112 .. ItM

COMPANIES ACT,!99!

(ACT NO. XXV OF 1995)

Companies Ad (InvestmeUI Compauies with Variable

Shan CapIW) R_Ho .. , ....

IN exercise of the powers conferred by subsection ( 10) of section

84 and section 188 of the Companies Act, 1995, the Minister of Finance,

acting on the advice of the Malta Financial Services Centre, has made

the following reguJations:-

I. (1) These regulations may be cited as the Companies Act

(Investment Companies with Variable Share Capital) ReguJations,l996.

(2) 1bese regulations shall be deemed to have come into

force on the 1st January, 1996.

(1) Dawn ir-regolamenti jistghu jissejhu r-Regolamenti ta'

1- 1996 dwar ii--Kumpanniji ta' Investiment b' Kapital Azzjonarj u

VlJjabbli skond I-An dwar il-Kumpanniji.

(2) Dawn ir-regolamenti ghandhomjitqiesu Ii bdew isehhu

fl-I ta' Jannar, 1996.

In these regulations, unless the context otherwise requires:-

"Act" means the Companies Act, 1995;

"base cuneocy" means the currency in which a sub-fund is

denominated;

"competent authority" means the competent authority under

the Investment Services Act, 1994;

"currency" means. in addition to the Maltese lira., any

convertible currency in terms of section 186 of the Act;

"fractional shan:" means a fraction of a whole share in any

class of shares issued by an investment company with variable

share capital;

"SICA V" means an investment company with variable share

capital duly licensed in terms of section 4 of the Investment Services

Act, 1994;

"sub-fund" means a distinct class of shares in an umbrella or

multi-class company to which are allocated assets and liabilities

distinct from other assets and liabilities allocated to other classes

of shares in the same company and which may pursue investment

objectives and adhere to investment policies different from those

of other classes of shares in the same company;

"'umbrella or multi-class company" means a SICA V falli ng

within the terms of regulation 5 hereunder.

(1) A SICA V may. if so authorized by its memorandum or fftaiOMI ......

utides. issue fractional shares up to such number of decimal places,

not being less than three. as shan be specified in the memorandum or

articles, and under such terms and conditions as may be stipulated

therein .

FractionaJ shares shall beautomaticaUy consolidated into

(2)

a whole shue of the same class when the fractional shares held by one

shareholder become equaJ to a whole share.

(3) A fractional shue shall carry no voting rights in generaJ

meetings of the company.

Notwithstanding anything contained in the definition of Compony

company secretary in section 2, and in subsection (3) of section 138 of SectNry .

the Act, a SICA V shall, with the approval of the competent authority,

appoint to the office of company secretary, a person holding an

investment services licence in terms of section 3 of the Investment

Services Act, 1994, authorizing that person to perform the functions of,

and to act as, a company secretary, whether or not such a person is an

individual.

S. (1) A SICA V may be constituted as an umbrella or multi· Muki<1aI

class company, ifin terms of its memorandum orarticles, its share capital : :.

is, or is capable of being , divided into different classes of shares, where

each class of shares represents a distinct suJ>..fund of the company.

A SICA V may only be validlyconstiruted as an umbrella

(2)

or a multi-class company if it is so licensed by the competent authority .

A SICA V duly licensed to be constituted as an umbrella

(3)

or multi-class company may , with the approval of the competent

authority, establish new suJ>..funds by the creation and issue of new

classes of shares.

Each class of shares representing a sub·fund in any

(4)

umbrella or multi-class company may be designated in a different

currency provided that a class of shares may be designated only in one

currency .

(I) SICA V tista' tilwaqqafbhaJa kumpannija umbrella jew

ta' diversi kiassijiel, jelck stond ii-memorand um jcw l-istalUl taghha,

il-kapital azzjonatju hu,jew jista' jkun, diviz fi k1assijiet differenti ta'

azzjonijiet fejn kull klassi ta' azzjonijiel tirrappre:ienta sotto-fonddistint

taJ-kumpannija.

(2) SICAV tista ' biss validament lilwaqqaf bhala

kumpannija umbrella jew ta' diversi klassijictjekk Ikun lieenzjata bhala

tali mill-awroriti kornpetenti.

(3) SICA V Ii ghand ha licenzja biex litwaqqaf bhal.

kumpannija umbrella jew ta' di versi klassij iet tista' , bl-approvazzjoni

tal-awtoritA kornpetenli , lWaqqaf souo-fondi godda pennczz tal-hrug

ta' k1assijiet godda ta' azzjonijiet.

(4) F'kumpannija umbrella jew ta' diverai ldassijiel, kull

k1assi ta' azzjonijiet Ii tirrapprei.enta sotto-fond tista' tJrun denominata

fmunita dirferenti, ii.da k1assi ta' azzjonijiet tista' tkun dcnominata

fmuni13 wahda biss.

(I) An umbrella or multi-class company having its share _

capital denominated in different currencies shall draw up its annual

accounts in anyone or such currencies, as may be approved by the ...............

cnmpetent authority .

(2) The directon of an umbrella or multi-class company

shall maintain propel accounting rec<Hds of the as,.., .. and liabilities of

each sub-fund in the base currency of that sub-fund.

(3) The provisions of paragraph (I) hereof shaU mutatis

mMIlJtttii$ _!?ply to the drawing up of any other .epoalS or financial

ICalcmenli which may be required under the Act or by the competent

authority.

0'_

hem>,.

fo< the """""'"

(I) on<! (3)

the

(4)

conversion from the base currency of 8. sub-fund into the cunency in

which the ItInuaiaccounlS of the umbrella or multi-clasa company are

10 be drawn up , hatl be made by using the excbange rate between the

r .. l i d and latter currencies on the ba1anc:e sheet date, and such rate

ahall be the off)Cjal closing middle rate issued by the Central Bank of

Malta. This rile aball be disclosed in the noccs to the accounts.

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