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Third Session, Thirty-Eighth Legislature

This version is based on the printed bill that was distributed in the Legislature after First Reading.   It is not the official version.   If accuracy is critical, you can obtain a copy of the printed bill from Statutory Publications.

Bill 39

THE INVESTMENT TRUST UNITHOLDERS' PROTECTION ACT


Table of Contents Explanatory Note

(Assented to                                         )

HER MAJESTY, by and with the advice and consent of the Legislative Assembly of Manitoba, enacts as follows:

Definition

1           In this Act, "Manitoba income trust" means a trust that

(a) is created by a trust instrument governed by the laws of Manitoba, whether the trust is created before or after the coming into force of this Act; and

(b) is a reporting issuer under The Securities Act.

Limited liability

2           Despite any express or implied agreement by a beneficiary to indemnify a trustee, a beneficiary of a Manitoba income trust is not, as a beneficiary, liable for any act, default, obligation or liability of any of its trustees that arises after this Act comes into force.

Governing law

3           Without limiting any other circumstances in which a trust instrument may be governed by the laws of a particular jurisdiction, a trust instrument is governed by the laws of the particular jurisdiction as provided in the trust instrument.

No effect on other trusts

4           This Act does not affect any liability of a beneficiary of a trust to which this Act does not apply.

C.C.S.M. reference

5           This Act may be referred to as chapter I105 of the Continuing Consolidation of the Statutes of Manitoba.

Coming into force

6           This Act comes into force on the day it receives royal assent.

Explanatory Note

This Bill protects the beneficiary of an income trust from liability, as a beneficiary, for a trustee's act, default, obligation or liability arising after the Bill comes into force.  The protection applies only to a trust that is a reporting issuer under The Securities Act.