COMPANIES ACT - 1963 (ACT 179)

    Section - 319 - Mutual Funds

    (1) Where the Registrar is satisfied that a body corporate, being a public company within the meaning of this Code or an external company having an established place of business in Ghana within the meaning of Chapter V of this Code, has been incorporated for the purpose of holding and managing securities or other property, and that in the Regulations of the body corporate or in some other instrument binding the body corporate satisfactory arrangements are made for ensuring,

    (a) that if any invitation is made to the public to subscribe for its shares the price at which the shares are offered shall be based on the net value of its assets at the time of the offer with no addition except for a reasonable service charge, and

    (b) that the body corporate will at any time repurchase any such shares from the holder thereof at a price based on the net value of its assets at the time of the repurchase without any deduction except for a reasonable service charge,

    he may, in his absolute discretion and subject to such conditions and restrictions as he shall think fit, by legislative instrument declare such body corporate to be an authorised mutual fund for the purposes of this Code and, by such instrument, may direct that so long as such body corporate remains an authorised mutual fund any of the provisions of sections 59 to 63, 66 and 67, 275 to 279, 281 to 284 and 314 of this Code shall not have effect in relation to that body corporate or to invitations to the public to acquire or dispose of its shares or any of such provisions shall have effect with such modifications as are specified in the instrument.

    (2) If the Registrar considers that the instrument declaring any body corporate to be an authorised mutual fund should be revoked or that the terms of the instrument should be varied, he may serve on the body corporate a written notice that he is considering the revocation of the instrument or, as the case may be, a specified variation of its conditions, restrictions or directions, and inviting the body corporate to make, within a period of one month from the date of service of the notice, any representations it may desire to make with respect to the proposed revocation or variation,

    (3) The Registrar may revoke or vary the instrument after the expiration of the said period, but, before deciding whether or not to revoke or vary the instrument, he shall take into consideration any representations so made by the body corporate and, if it so requests, afford it an opportunity of being heard by the Registrar within that period.

    (4) If any authorised mutual fund shall commit any breach or non-observance of any of the conditions or restrictions in the instrument declaring it to be an authorised mutual fund every officer of the body corporate who is in default shall be liable to imprisonment for a term not exceeding two years or to a fine not exceeding one thousand pounds or to both such imprisonment and fine.