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2017 Mississippi Code
Title 79 - Corporations, Associations, and Partnerships
Chapter 15 - Investment Trusts
General Provisions
§ 79-15-21. Duration of investment trust; rule against perpetuities and restraint of alienation are not violated
Universal Citation: MS Code § 79-15-21 (2017)
- (1) An investment trust shall not be deemed invalid as violating the rule against perpetuities or any law or statute against suspension of the powers of alienation. Such trust may continue for an indefinite period or for such time as may be necessary for the accomplishment of the purposes for which it was created; provided, however, that the declaration of trust shall contain a provision that such trust may be terminated at any time by the affirmative vote of holders of at least two thirds (2/3) of the amount of certificates of beneficial interest then outstanding, in the manner hereafter provided.
- (2) At any meeting called for the purpose, notice of the purpose being contained in the call, the holders of at least two thirds (2/3) of the amount of certificates of beneficial interest then outstanding may by their affirmative vote dissolve the investment trust; the trustees shall thereupon file with the secretary of state an attested certified copy of the minutes of the meeting at which such vote was taken, together with a statement of the names and addresses of all trustees duly verified. The secretary of state, upon receipt of the above, shall record same and execute a certificate to the effect that such minutes and statement have been filed and that it appears therefrom that the investment trust has complied with this section. Such certificate shall be filed for record by the investment trust in the office of the clerk of the chancery court of the county wherein the original declaration of trust was recorded, and thereupon such investment trust shall be dissolved and shall cease to carry on business except for the purpose of adjusting and winding up its affairs. It shall then proceed to adjust and wind up its business, be empowered to carry out its contracts, collect its accounts receivable, and liquidate its assets and apply the same in discharge of its obligations and, after paying such obligations, the holder of each certificate of beneficial interest, according to the amount paid in thereon, shall be entitled to his portion of the balance of the assets. Said investment trust shall continue in existence for the purpose of discharging its debts and obligations, collect and distribute its assets, and doing all other acts required in order to wind up its business, and may sue and be sued for the purpose of enforcing such debts and obligations until its affairs are fully adjusted and wound up for three (3) years.
- (3) If the holders of certificates of beneficial interest of an investment trust shall vote to dissolve, any holder of a certificate of beneficial interest of such trust may, within six (6) months from the date that the certificate of dissolution is filed with the chancery clerk as herein provided, demand an accounting by the trustees of all assets held by them in such capacity; and the chancery court of the county wherein the original declaration of trust was recorded shall have jurisdiction to compel such accounting upon petition by any holder of a certificate of beneficial interest in the investment trust.
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