S.L. 370.16 Art. 3Establishment of contractual fund.

(1) A contractual fund is a collective investment scheme a within the meaning of article 2 of the Act, established by means of a deed of constitution entered into for such purpose by the manager and the depositary of such a collective investment scheme, under which the unit holders participate and share in the property of the collective investment scheme as evidenced by units issued by the manager in terms of regulation 8.

(2) A contractual fund shall not have legal personality and its property shall be represented by freely transferable units.

(3) A contractual fund may be constituted by a public deed or by private writing.

(4) A contractual fund may be established either as an open ended collective investment scheme or as a closed ended collective investment scheme.

(5) The provisions of the deed of constitution of a contractual fund shall be binding on the unit holders as if such persons had been party to the deed.

(6) The liabilities of a unit holder in a contractual fund shall be limited to the amount agreed to be contributed by the unit holder for the subscription of units therein.

(7) A contractual fund, whose deed of constitution is entered into by a manager and depositary in terms of these regulations, shall be deemed to be domiciled in Malta and shall be subject to the laws of Malta.