A managed investment scheme may be wound up in a number of circumstances.
A managed investment scheme may be wound up in accordance with its constitution. It is common for the constitution of a registered scheme to provide that the scheme is to be wound up either at a specified time, in specified circumstances or on the happening of a specified event. If the constitution provides for winding up upon any of these events or circumstances and that event or circumstance occurs, the responsible entity must wind up the scheme.
A registered scheme may also be wound up by members requisitioning a meeting and passing an extraordinary resolution directing the responsible entity to wind up the scheme.
A court may order that a registered scheme be wound up on the application of certain interested persons in a number of instances including where the court determines it is just and equitable to make the order, the responsible entity has been removed and has not been replaced, and where execution of process against a creditor of the scheme remains outstanding. The courts have broad powers to make orders and give directions with respect to how the scheme is to be wound up.
A registered scheme may also be wound up if the responsible entity considers that the scheme's purpose has or cannot be accomplished.
A court may order that a scheme that operates as an unregistered scheme, in circumstances where it was required to be registered, be wound up. Otherwise, generally the winding up of unregistered schemes is left to the scheme's constitution or trust deed.
See Winding up under constitution.
See Winding up under member direction.
See Winding up under court order.