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  • Part 6: Removal and Retirement of the Trustee

    • 26. Removal and retirement of the Trustee

      (1) A Trustee may not retire, or be removed, except as provided in this Article.
      (2) A Fund Manager may at the request of the Trustee or otherwise, and if it is of the view that the Trustee is unable to discharge its functions shall, with the prior written approval of the DFSA, replace the existing Trustee.
      (3) The DFSA may grant approval for the replacement of a Trustee only where it has received:
      (a) a written notice from the Fund Manager of its intention to remove the Trustee and either:
      (i) a legal certification that the removal of the Trustee will not adversely affect the interests of the Unitholders and the Fund Manager's ability to comply with its obligations under the Trust Deed, Prospectus and the Collective Investment Law 2010; or
      (ii) a Special Resolution of Unitholders approving the Fund Manager's proposal to remove the Trustee and its replacement with another Trustee; and
      (b) the written consent of the person who agrees to be the replacement Trustee, and that person meets the requirements for a Trustee in Article 18 to be able to act as the replacement Trustee.
      (4) The Unitholders of the Investment Trust may replace the Trustee by Special Resolution as provided under Article 35 of the Collective Investment Law 2010 or any rules made for the purpose of that Article.
      (5) The DFSA or the Fund Manager may apply to the Court for an order for the removal of the Trustee and any other appropriate orders including, but not limited to, the appointment of a replacement Trustee where the Trustee is, or is believed to be, in breach of its obligations under the Trust Deed, its Licence, this Law or any other DIFC law or rules made under those laws.
      (6) The DFSA may make Rules prescribing other circumstances in which a Trustee may be replaced.
      (7) Subject to the terms of the Trust Deed, this Law and the Collective Investment Law 2010 and the rules made for the purposes of those laws, a Trustee appointed as a replacement Trustee shall have the same powers, discretions and duties as the previous Trustee.

    • 27. Position of the outgoing Trustee

      Where a Trustee is removed or retires under Article 26, it shall, without any delay, transfer the assets of the Investment Trust held by it as directed by the Fund Manager or, as required by any Court order. Until the assets of the Investment Trust are so transferred, the Trustee remains accountable to the Unitholders for the safety of those assets.