Bill 127 2003

An Act to protect
unitholders in investment trusts
from liability

Her Majesty, by and with the advice and consent of the Legislative Assembly of the Province of Ontario, enacts as follows:

Definition

1. In this Act,

"investment trust" means a mutual fund trust as defined in subsection 132 (6) of the Income Tax Act (Canada) that offers and sells its units to the public in Ontario.

Administration of Act

2. The Minister of Finance is responsible for the administration of this Act.

Protection from liability

3. The holders of units in an investment trust are not, in their capacity as holders of the units, liable for any act, default, obligation or liability with respect to the trust except in circumstances specified in the regulations made under this Act.

Regulations

4. The Lieutenant Governor in Council may make regulations,

(a) specifying circumstances, including the winding up of an investment trust, in which the holders of units in the trust are liable for an act, default, obligation or liability with respect to the trust;

(b) specifying the extent of liability of the holders of units in the circumstances mentioned in clause (a).

Commencement

5. This Act comes into force on the day it receives Royal Assent.

Short title

6. The short title of this Act is the Investment Trust Unitholders Protection from Liability Act, 2003.

EXPLANATORY NOTE

The Bill protects unitholders in an investment trust from liability in their capacity as unitholders.