Corporations Act 2001

CHAPTER 5C - MANAGED INVESTMENT SCHEMES  

PART 5C.6 - MEMBERS' RIGHTS TO WITHDRAW FROM A SCHEME  

SECTION 601KA   MEMBERS ' RIGHTS TO WITHDRAW  

Withdrawal from schemes that are liquid

601KA(1)    
The constitution of a registered scheme may make provision for members to withdraw from the scheme, wholly or partly, at any time while the scheme is liquid (see subsection 601GA(4) ).

Withdrawal from schemes that are not liquid

601KA(2)    
The constitution of a registered scheme may make provision for members to withdraw from the scheme, wholly or partly, in accordance with this Part while the scheme is not liquid (see subsection 601GA(4) ).

Restrictions on withdrawal from schemes

601KA(3)    
The responsible entity must not allow a member to withdraw from the scheme:

(a)    if the scheme is liquid - otherwise than in accordance with the scheme ' s constitution; or

(b)    if the scheme is not liquid - otherwise than in accordance with the scheme ' s constitution and sections 601KB to 601KE .

601KA(3A)    

An offence based on subsection (3) is an offence of strict liability.

Note: For strict liability , see section 6.1 of the Criminal Code .

Liquid schemes

601KA(4)    
A registered scheme is liquid if liquid assets account for at least 80% of the value of scheme property.

Liquid assets

601KA(5)    
The following are liquid assets unless it is proved that the responsible entity cannot reasonably expect to realise them within the period specified in the constitution for satisfying withdrawal requests while the scheme is liquid:

(a)    money in an account or on deposit with a bank;

(b)    bank accepted bills;

(c)    marketable securities (as defined in section 9 );

(d)    property of a prescribed kind.

601KA(6)    
Any other property is a liquid asset if the responsible entity reasonably expects that the property can be realised for its market value within the period specified in the constitution for satisfying withdrawal requests while the scheme is liquid.