中华人民共和国证券投资基金法 Law of the peoples Republic of china on Funds for Investment in securities

ted：

　　（1）making false records， misleading statements， or grave omissions；

　　（2）making forecast of the performance of securities investment；

　　（3）guaranteeing to make profits or bear losses in breach of relevant regulations；

　　（4）defaming other fund managers， fund custodians or institutions selling fund units； and

　　（5）other acts prohibited by the securities regulatory authority under the state council pursuant to the provisions of relevant laws and administrative regulations.

　　Chapter VIII

　　Modification and termination of a Fund contract and Liquidation of Fund assets

　　Article 65 the mode of operation of a fund may be changed pursuant to the provisions of the fund contract or the resolution adopted at a general meeting

of the holders of fund units and with the approval of the securities regulatory authority under the units state council.

　　Article 66 closed-end fund may expand its fund size or extend the term of its fund contract provided that the following requirements are met and approval by the securities regulatory authority under the state council is obtained：

　　（1）the fund has good performance；

　　（2）no administrative or criminal penalty has been imposed on the fund manager for a breach of any law or regulation in the two preceding years；

　　（3）a resolution to such an effect is adopted at a general meeting of the holders of fund units； and

　　（4）other requirements prescribed by this law.

　　Article 67 A fund contract shall be terminated in any of the following circumstances：

　　（1）the term of the fund contract expires and is not extended；

　　（2）the termination is decided on at a general meeting of the holders of fund units；

　　（3）the duties of the fund manager and the fund custodian are terminated and are not assumed by a new fund manager or a new fund custodian within six months； and

　　（4）other circumstances prescribed in the fund contract.

　　Article 68 Upon termination of a fund contract， the fund manager shall have a liquidation team formed to liquidate the fund assets.

　　The liquidation team shall be composed of the fund manager， the fund custodian and related intermediary agencies.

　　After the liquidation report prepared by the liquidation team is audited by a public accounting firm and a legal opinion on the liquidation report is produced by a law firm， the report shall be submitted to the securities regulatory under the state council for the record and shall be made known to the public.

　　Article 69 the fund asses remaining after completion of the liquidation shall be distributed among the holders of fund units in proportion to the number of fund units they hold respectively.

　　Chapter IX

　　Rights of the Holders of Fund Units and exercise of the rights

　　Article 70 Holders of fund units shall have the following rights：

　　（1）to share returns from the fund asses；

　　（2）to receive distribution of the fund assets remaining after completion of liquidation；

　　（3）to transfer fund units or apply for redemption of fund units according to law；

　　（4）to request in accordance with relevant regulations， the convening of a general meeting of the holders of fund units；

　　（5）to exercise the right to vote in respect of matters submitted to the general meeting of the holders of fund units for approval；

　　（6）to check or make copies of publicly disclosed information concerning the fund；

　　（7）in accordance with the law， to bring an action against any infringement of their legitimate rights and interests by any fund manager， any fund custodian or any institution selling fund units； and

　　（8）other rights prescribed in the fund contract.

　　Article 71 the following matters shall be submitted for approval and decision by a general meeting of the holders of fund units：

　　（1）termination of the fund contract ahead of fund units；

　　（2）expansion of the size of the fund or extension of the term of the fund contract；

　　（3）change of the mode of operation of the fund；

　　（4）increase of remuneration to the fund manager and the fund custodian；

　　（5）change of the fund manager and the fund custodian； and

　　（6）other matters prescribed in the fund contract.

　　Article 72 A general meeting of the holders of fund units shall be convened by the fund manger. in the event that the fund manager fails to convene the general meeting according to relevant regulations or is unable to convent the meeting the fund custodian shall convene the meeting.

　　In the vent that the holders representing more than 10 percent of the fu

nd units request the convening of a general meeting of the holders of fund units in respect of the same matter， and that the fund manager and the fund custodian fail to convene the meeting， the holders representing more than 10 percent of the fund units shall have the right to proceed to convene the meeting on their own and shall the matter to the securities regulatory authority under the state council for the record.

　　Article 73 to convene a general meeting of the holders of fund units， the convener shall， at least 30 days ahead of the meeting， announce the time and the form of the meeting， the matters to be deliberated， the procedure of discussion， the voting formula， etc.

　　A general meeting of the holders of fund units shall not put to the vote any matter which is not covered in the announcement.

　　Article 74 A general meeting of the holders of fund units may be held on the spot， through communication， or by other means.

　　Each fund unit carries one vote. A holder of fund units may entrust a proxy to attend a general meeting of the holders of fund units and exercise his right to vote thereat.

　　Article 75 No meeting of the holders of fund units shall be convened unless holders representing at least 50 percent of the fund units are present at the meeting， and decisions on matters under deliberation at the meeting shall be adopted only by the holders of fund units with more than 50 percent of the right to vote who are present at the meeting； but a change of the mode of operation of the fund， a change of the fund manager or the fund custodian and termination of the fund contract ahead of schedule shall be subject to approval by the holders of fund units with more than two-thirds of the right to vote who are present at the meeting.

　　Matters decided on at a general meeting of the holders of fund units shall， in accordance with law， submitted to the securities regulatory authority under the state council for approval or for the record， and shall be made known to the public.

　　Chapter X

　　Supervision and Regulation

　　Article 76 the securities regulatory authority under the state council shall perform the following duties in accordance with law：

　　（1）in accordance with law formulating rules and regulations relation to supervision and regulation of the activities in respect of investment of funds in securities and exercising the power of approval or verification；

　　（2）handling registration of funds；

　　（3）supervising and regulating the activities carried out by fund managers， fund custodians and other institutions in investing funds in securities， and investigating， and imposing penalties on， violations of law and making the violations known to the public；

　　（4）formulating professional qualifications and code of conduct for fund employees and supervising the implementation thereof；

　　（5）supervising and inspecting disclosure of fund-related information；

　　（6）providing guidance to and supervising the activities of fund industry associations； and

　　（7）other duties prescribed by laws and administrative regulations.

　　Article 77 where performing its duties in accordance with law， the securities regulatory authority under the state council shall have the power to take the following measures：

　　（1）entering the premises where illegal activities take place in order to conduct investigation and collect evidence；

　　（2）questioning the parties concerned and the entities and individuals who are involved in the matter under investigation， and requiring them to provide explanations in respect of the matter under investigation；

　　（3）checking and making copies of the records of securities transactions records of securities registrations and transfers， financial and accounting information and other related documents and information of the parties concerned and the entities and individuals tha

t are involved in the matter under investigation， and sealing up the documents and information which are likely to be transferred or concealed；

　　（4）checking the capital accounts， securities accounts or fund accounts of the parties concerned and the entities and individuals that are involved in the matter under investigation， and where there is evidence to show signs of transfer or concealment of illegal funds and securities applying to a judicial organ for the freezing of the accounts in question； and

　　（5）taking other measures prescribed by laws and administrative regulations.

　　Article 78 when carrying out their duties of investigation or inspection in accordance with law， no less staff members of the securities regulatory authority under the state Council shall be present， and they shall produce their legal identification documents and shall keep confidential the commercial secrets which they come to know during the course of investigation or

┨网页设计特效库┠ http://www。z┗co⊙l。com/网页特效/