Current Uniform Acts

Income Trusts Act Working Group Report 2007

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.

Retroactive effect

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.

Next Annual Meeting

2017 Conference

Hotel Saskatchewan

Regina, SK

August 13 - 17, 2017
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