Current Uniform Acts
Part 2 – Unit-holder Immunity
Recommendation 7: The Act subsume any stand-alone Provincial statute providing a liability shield in favour of unit-holders of trusts that are reporting issuers and adopt the immunity formulation found in the Ontario Act, making it apply on a uniform basis in all Provinces. The liability shield would extend to unit-holders of income trusts, subsidiary trusts and ordinary mutual funds.
Recommendation 8: Like the Income Trust Liability Act (British Columbia), the unit-holder immunity rule in the Act apply with retroactive effect.
Note: Recommendation 9 is at the end of the document.
Note: exception to Recommendation 3 - except with respect to recommendations 7, 8, 9, 36 and 37 below, the Act not apply to a trust in which investors are entitled to receive, on demand or within a specified period after demand, an amount computed by reference to the value of a proportionate interest in the whole or part of the net assets of the fund.
Unit-holder immunity – mutual funds
7 The liability of a unit-holder of a mutual fund, as a unit-holder, for any obligation or liability arising out of or from the administration, management or assets of the mutual fund or any conduct of a trustee, administrator or manager of the mutual fund, is limited to the unit-holder’s interest in the units of the mutual fund.
Unit-holder immunity – income trusts
8 The liability of a unit-holder of a trust, as a unit-holder, for any obligation or liability arising out of or from the administration, management or assets of the trust or any conduct of a trustee, administrator or manager of the trust, is limited to the unit-holder’s interest in the units of the income trust.
9 Sections 7 and 8 apply to and must be given effect in every action or proceeding, whether commenced before, on or after the date this Act comes into force.