- Laws of Fiji

Last Updated: 24 June 2022

[COM 327] Removal of trustee327

327

(1) Notwithstanding the provisions of any other written law or anything to the contrary in the scheme deed governing any managed investment scheme, the manager of the managed investment scheme must not have power to remove the trustee but may apply to the court for an order providing for the removal of that trustee.

(2) The Reserve Bank may remove the trustee of any managed investment scheme by written notice to the trustee, manager and members of the managed investment scheme.

(3) The manager of the managed investment scheme must propose a replacement trustee and call a general meeting to replace the trustee, within 14 days after becoming aware that—

(a)the trustee has ceased to exist;
(b)the trustee has not been validly appointed;
(c)the trustee is not eligible to be appointed or to act as trustee under section 325;
(d)the trustee has failed or refused to act as trustee in accordance with the provisions or covenants of the scheme deed or the provisions of this Act;
(e)a receiver or manager is appointed over the whole or a substantial part of the assets or undertaking of the existing trustee and has not ceased to act under that appointment, or an application is presented for the winding up of the existing trustee (other than for the purpose of and followed by a reconstruction, unless during or following such reconstruction the existing trustee becomes or is declared to be insolvent);
(f)the trustee is under investigation for conduct that contravenes the Trustee Act 1966 or any other Fiji legislation relevant to its role as trustee; or
(g)the Reserve Bank removes the trustee of a managed investment scheme under this section.

(4) At a general meeting called by a manager under this section, the members of the managed investment scheme holding at least 50% of the value of the interests in the managed investment scheme who attend the meeting and vote on the resolution must pass a resolution to appoint a replacement trustee.

(5) Notwithstanding anything to the contrary in the scheme deed governing the managed investment scheme, a trustee of a managed investment scheme may not be discharged or retire from that trust until another trustee has been appointed to and assumed that office in accordance with the provisions of the scheme deed or this Act and the trustee has notified the Reserve Bank of the change in trustee in the prescribed form.