Common use of Eligible Investors Clause in Contracts

Eligible Investors. (a) Subject to clause 6.9(c), the Trustee may approve a person referred to in paragraphs (c) or (d) of the definition of Eligible Investor to be an Eligible Investor for the purposes of the Deed. (b) If the Trustee proposes to approve a person referred to in paragraphs (c) or (d) of the definition of Eligible Investor as an Eligible Investor, the Trustee must: (i) notify the Unit Holders and provide reasonable particulars regarding the proposal; (ii) seek and consider the advice of a qualified and reputable Tax adviser as to whether approving the person as an Eligible Investor may result in the Trust being taxed in a similar manner to a company; and (iii) consider any submissions made to the Trustee by Unit Holders, provided that such submissions are made within the time period set by the Trustee (in its absolute discretion) having regard to the circumstances, time and manner in which it is proposed that the person become an Eligible Investor. (c) If, after taking into account the matters referred to in clauses 6.9(b)(ii) and 6.9(b)(iii), the Trustee, acting reasonably, forms the opinion that the approval of a person referred to in paragraphs (c) or (d) of the definition of Eligible Investor as an Eligible Investor would result in the Trust being taxed in a similar manner to a company, the Trustee must not approve that person under clause 6.9(a).