THE CORPORATIONS LAW

CHAPTER 5C - MANAGED INVESTMENT SCHEMES

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

SECTION 601KB   NON-LIQUID SCHEMES - OFFERS  

601KB(1)  [Non-liquid schemes]  

The responsible entity of a registered scheme that is not liquid may offer members an opportunity to withdraw, wholly or partly, from the scheme to the extent that particular assets are available and able to be converted to money in time to satisfy withdrawal requests that members may make in response to the offer.

601KB(2)  [Withdrawal offer]  

The withdrawal offer must be in writing and be made:

(a)  if the constitution specifies procedures for making the offer - in accordance with those procedures; or

(b)  otherwise - by giving a copy of the offer to all members of the scheme or to all members of a particular class.

601KB(3)  [Specifications]  

The withdrawal offer must specify:

(a)  the period during which the offer will remain open (this period must last for at least 21 days after the offer is made); and

(b)  the assets that will be used to satisfy withdrawal requests; and

(c)  the amount of money that is expected to be available when those assets are converted to money; and

(d)  the method for dealing with withdrawal requests if the money available is insufficient to satisfy all requests.

The method specified under paragraph (d) must comply with section 601KD.

601KB(4)  [Joint members]  

For joint members, a copy of the withdrawal offer need only be given to the joint member named first in the register of members.

601KB(5)  [Lodgment with ASIC]  

As soon as practicable after making the withdrawal offer, the responsible entity must lodge a copy of the offer with ASIC.