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FRANkLiN TEMPLETON INVESTMENT FUNDS - Citibank

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PROSPECTUS OF FRANKLIN <strong>TEMPLETON</strong> <strong>INVESTMENT</strong> <strong>FUNDS</strong><br />

Appendix C<br />

Additional Information<br />

1. The Company is an investment company with limited liability organised as a société anonyme under the<br />

laws of the Grand Duchy of Luxembourg and is qualified as a société d’investissement à capital variable.<br />

The Company was incorporated in Luxembourg on November 6, 1990, for an undetermined period.<br />

The Articles were published in the Mémorial on January 2, 1991. Amendments to the Articles were<br />

published in the Mémorial on October 25, 1994, November 4, 1996, May 22, 2000, June 16, 2004<br />

and March 25, 2005. The Company is registered with the Registre de Commerce et des Sociétés de et à<br />

Luxembourg, under number B 35 177. Copies of the Articles as amended are available for inspection<br />

at the Registre de Commerce et des Sociétés de et à Luxembourg and the registered office of the Company.<br />

2. The minimum capital of the Company is 1,250,000 Euro or the equivalent in U.S. dollars.<br />

3. The Company may be dissolved upon decision of an extraordinary general meeting of its Shareholders.<br />

If the capital of the Company falls below two thirds of the minimum capital, the Board of Directors must<br />

submit the question of the dissolution of the Company to a general meeting for which no quorum shall<br />

be prescribed and which shall be decided by a simple majority of the holders of Shares represented at<br />

the meeting. If the capital of the Company falls below one-fourth of the minimum capital, the Board of<br />

Directors must submit the question of the dissolution of the Company to a general meeting for which<br />

no quorum shall be prescribed; dissolution may be resolved by Shareholders holding one- fourth of<br />

the Shares at the meeting. If the Company should be liquidated, its liquidation will be carried out in<br />

accordance with the provisions of the laws of the Grand Duchy of Luxembourg which specify the<br />

steps to be taken to enable Shareholders to participate in the liquidation distribution(s) and in that<br />

connection provides for deposit in escrow at the Caisse de Consignation of any such amounts which<br />

have not been promptly claimed by any Shareholders. Amounts not claimed from escrow within the<br />

prescribed period would be liable to be forfeited in accordance with the provisions of the laws of the<br />

Grand Duchy of Luxembourg.<br />

4. The Board of Directors may decide to liquidate a Fund if the net assets of such Fund fall below USD<br />

20 million or if a change in the economic or political situation relating to the Fund concerned would<br />

justify such liquidation. The decision of the liquidation will be published by the Company prior to the<br />

effective date of the liquidation and the publication will indicate the reasons for, and the procedures<br />

of, the liquidation operations. Unless the Board of Directors otherwise decides in the interests of, or<br />

to keep equal treatment between, the Shareholders, the Shareholders of the Fund concerned may continue<br />

to request redemption or conversion of their Shares. Assets which could not be distributed to their<br />

beneficiaries upon the close of the liquidation period of the Fund will be deposited with the Custodian<br />

for a period of six (6) months after the closure of liquidation. After such time, the assets will be deposited<br />

with the Caisse de Consignation on behalf of their beneficiaries.<br />

Under the same circumstances as described in the preceding paragraph, the Board of Directors may<br />

decide to close down one Fund by contributions into another Fund. In addition, such merger may be<br />

decided by the Board of Directors if required by the interests of the Shareholders of the relevant Funds.<br />

Such decision will be published in the same manner as described in the preceding paragraph and, in<br />

addition, the publication will contain information in relation to the other Fund. Such publication will<br />

be made within one (1) month before the date on which the merger becomes effective in order to enable<br />

Shareholders to request redemption or exchange of their Shares, free of charge, before the operation<br />

involving contributions into another Fund becomes effective.<br />

Under the same circumstances as provided above, the Board of Directors may also decide to close down<br />

one Fund by contributions into another undertaking for collective investment governed by Part I of the<br />

Law relating to collective investment undertakings. In addition, such merger may be decided by the<br />

Board of Directors if required by the interests of the Shareholders of the relevant Fund. Such decision<br />

will be published in the same manner as described above and, in addition, the publication will contain<br />

information in relation to the other undertaking for collective investment. Such publication will be<br />

82 Franklin Templeton Investment Funds

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