Document from CIS Legislation database © 2003-2022 SojuzPravoInform LLC

PRESIDENTIAL DECREE OF UKRAINE

of February 19, 1994 No. 55/94

About investment funds and investment companies

(as amended on 07-08-1999)

For the purpose of ensuring functioning of the stock market and the circulation of privatization papers I decide:

1. Approve Regulations on investment funds and investment companies it (is applied).

2. Determine that the Regulations on investment funds and investment companies based to commissioning subjects of business activity which contain in the name names "investment fund" or "investment company" or carry out activities, stipulated in Item 21 this Provision, within six months from day of publication of this Decree shall bring the constituent documents and conditions of implementation of release of investment certificates into compliance with requirements of the Provision.

3. To the Cabinet of Ministers of Ukraine to develop and in a month to submit for consideration of the Verkhovna Rada of Ukraine the bill of Ukraine "About modification and amendments to the Law of Ukraine "About the taxation of the income of the companies and organizations", directed to prevention of double taxation of the income from the activities connected with security circulation.

4. To the Ministry of Finance of Ukraine, Fund of state-owned property of Ukraine in two-month time to approve the regulations provided by this Provision.

 

President of Ukraine L. KRAVCHUK

Approved by the Presidential decree of Ukraine of February 19, 1994 No. 55/94

Regulations On investment funds and investment companies

This Provision determines concept of investment funds and investment companies, procedure for creation and condition of their activities, implementation of the state control, and also measure for protection of interests of their participants.

Section 1. INVESTMENT FUND

1. The investment fund is the legal entity based in the form of private company taking into account the requirements established by this Provision which performs exclusive activities in the field of joint investment.

2. The main terms and concepts which are applied in this Provision:

the affiliate of investment fund or investment company - the investment managing director, founders, and also participants, each of which owns at least than 25 percent of investment certificates;

depositary of investment fund - the legal entity who performs safe custody of assets, servicing of transactions with assets of investment fund and accounting of movement of assets based on the deposit agreement;

mutual fund of investment company - branch which on behalf of investment company performs joint investment;

open-end investment fund - fund which issues investment certificates with the obligation to participants concerning their redemption;

the closed investment fund - fund which performs release of investment certificates without capture of obligations on their redemption;

the investment declaration - component of the charter of investment fund in which the main directions and restrictions of investing activities of fund, procedure for release, sale and redemption of investment certificates, and also other questions of investing activities of fund are determined;

the investment managing director - the dealer in securities with whom the management agreement is signed by investment fund;

the investment certificate - security which is issued by exclusively investment fund or investment company and grants the right to its owner on income acquisition in the form of dividends;

joint investment - activities which are performed in interests and at the expense of founders and members of investment fund by release of investment certificates and carrying out business activity with securities;

net assets of investment fund - the size which is determined as difference between the amount of assets and the size of liabilities of investment fund taking into account their market value.

3. Investment funds are divided into open and are closed.

Open-end funds are created sine die and perform the redemption of the investment certificates in the terms established by the investment declaration of investment fund.

The closed funds are created for certain term and perfrom calculations for investment certificates after the termination of term of activities of investment fund.

4. Founders of investment fund are legal entities and physical persons.

Legal entities whose part of state-owned property in authorized fund exceeds 25 percent cannot be founders of investment fund. By the legislation also other restrictions concerning participation of legal entities and physical persons in creation of investment funds can be provided.

Founders bear responsibility to members of investment fund within cost of the stocks of authorized fund owned by them. Shares are stored at depositary and cannot be offered for sale.

5. For creation of investment fund his founders sign the foundation agreement, approve the charter and carry out registration of investment fund according to the procedure, established for registration of joint-stock companies.

6. The foundation agreement determines procedure founders of the joint activities connected with creation of investment fund, responsibility to participants and to the third parties.

In the charter of investment fund the name, the location and type of investment fund, the size and procedure for change of authorized fund, the list of founders, procedure for creation of governing bodies of investment fund, their competence and procedure for adoption of decisions by them, procedure for receipt by founders of dividends on each share in the amount of which is equal to the size of the dividend on one investment certificate, procedure for reorganization and liquidation of investment fund are specified.

The charter of investment fund shall contain the requirement for prohibition of creation of any special and reserve funds, and also may contain regulations on the complete distribution of its profits between founders and participants according to the procedure established by the investment declaration.

To the charter also other provisions which do not contradict the current legislation can be included.

7. The authorized capital of investment fund shall constitute at least than 2 thousand minimum wages established at the time of its registration and to be created at the expense of fees of founders in the form of the means, securities recognized such by the Law of Ukraine "About securities and stock exchange" and real estate.

The part of real estate in authorized fund shall not exceed 25 percent.

8. Members of investment fund are physical persons and legal entities which acquired investment certificates of this fund.

To the member of investment fund the certificate on the total cost of investment certificates can be issued.

9. Investment certificates can be nominal and to bearer.

The minimal nominal cost of the investment certificate cannot be less than 10000 krb. The nominal cost of investment certificates which exceeds 10000 krb., shall be multiple minimal nominal cost.

The investment certificate contains such details:

trade name of investment fund;

its location;

Warning!!!

This is not a full text of document! Document shown in Demo mode!

If you have active License, please Login, or get License for Full Access.

With Full access you can get: full text of document, original text of document in Russian, attachments (if exist) and see History and Statistics of your work.

Get License for Full Access Now

Disclaimer! This text was translated by AI translator and is not a valid juridical document. No warranty. No claim. More info

Effectively work with search system

Database include more 50000 documents. You can find needed documents using search system. For effective work you can mix any on documents parameters: country, documents type, date range, teams or tags.
More about search system

Get help

If you cannot find the required document, or you do not know where to begin, go to Help section.

In this section, we’ve tried to describe in detail the features and capabilities of the system, as well as the most effective techniques for working with the database.

You also may open the section Frequently asked questions. This section provides answers to questions set by users.

Search engine created by SojuzPravoInform LLC. UI/UX design by Intelliants.