7.—(1) This paragraph applies to an open-ended investment company if, at the start of the surrender year, any persons other than the designated person are bearers of outstanding bearer shares issued by the company.U.K.
(2) The company must, no later than 2 months after the start of the surrender year, give a notice to those persons—
(a)of their right during the surrender year to convert their bearer shares into registered shares,
(b)of what they need to do to exercise that right,
(c)of the company’s duty to retain dividends and other distributions paid in the surrender year in respect of bearer shares until the shares are converted or any proceeds of their cancellation are claimed,
(d)of the company’s duty to cancel bearer shares still outstanding at the end of the surrender year, and
(e)of how any proceeds of such cancelled shares may be claimed.
(3) The notice must be given by being—
(a)published in the Gazette,
(b)communicated to each of the persons in the same way (if any) as the company normally communicates with that person for other purposes relating to the person’s bearer shares in the company, and
(c)published in a prominent position on the company’s website (if it has one).
(4) The company must keep the notice as published on its website in a prominent position on its website until—
(a)the first anniversary of the end of the surrender year, or
(b)if earlier, the time when—
(i)the company no longer has any bearer shares in issue, and
(ii)all amounts (if any) paid into the account opened by the company in accordance with paragraph 5(3) have been paid out in accordance with paragraphs 5(2) and 6(2) and (3).
(5) Sub-paragraphs (2) to (4) do not apply in relation to a company if, before it gives the notice that would be required by sub-paragraph (2), it has ceased to have any bearer shares in issue.
(6) An open-ended investment company which contravenes this paragraph commits an offence.
(7) A person guilty of an offence under sub-paragraph (6) is liable on summary conviction—
(a)in England and Wales, to a fine;
(b)in Scotland or Northern Ireland, to a fine not exceeding level 5 on the standard scale.
Commencement Information
I1Sch. para. 7 in force at 1.1.2021, see reg. 1(2)