Canada Corporations Act

Marginal note:“Mutual fund shares”

• 14 (1) In this section “mutual funds shares” means any class of shares having conditions attached thereto that include conditions requiring the company issuing the shares to accept, at the demand of the holder thereof and at prices determined and payable in accordance with the conditions, the surrender of the shares, or fractions or parts thereof, that are fully paid.

• Marginal note:Issuing of mutual fund shares

  (2) Where the only undertaking of a company is the business of investing the funds of the company, its letters patent or supplementary letters patent may provide for the issuing of one or more classes of mutual fund shares, in which case the letters patent or supplementary letters patent shall set out the conditions governing

  • (a) the surrender of fully paid mutual fund shares or any fractions or parts thereof that are fully paid; and

  • (b) the determination of the price to be paid therefor and the manner and time of payment thereof.

• Marginal note:Effect of surrender

  (3) Any mutual fund shares or fractions or parts thereof surrendered to the company pursuant to the conditions attached to such shares shall be deemed to be no longer outstanding and shall not be reissued by the company.

• Marginal note:Additional conditions

  (4) There may be included in the conditions attached to mutual fund shares

  • (a) a condition providing for a participating interest in any fund administered by the company; and

  • (b) a condition that, upon the surrender of any fully paid mutual fund shares, or any fractions or parts thereof that are fully paid, the price to be paid therefor may be paid out of capital.

• Marginal note:Relating redemption or cancellation provisions to mutual fund shares

  (5) Where in any letters patent or supplementary letters patent the expression “redemption or purchase for cancellation”, or an expression of like import, is used in relation to any shares of a company, the expression shall, in relation to mutual fund shares of the company, be deemed to be a reference to acceptance by the company of the surrender of those shares.