Indigenisation and Economic Empowerment Act updated May 2011
PART 9
INVESTMENT OF DEPOSITED PROPERTY
Transfer of property to the Board
35.1 Subject to the provisions of this Schedule, all cash and other property which ought in
accordance with the provisions of this Schedule to form part of the deposited property shall be
paid or transferred to the Board and all cash shall, except in so far as such cash may in the
opinion of the managers be required for transfer to the distribution account, be applied at the
discretion of the managers (but subject always to the provisions of this Schedule) in the
acquisition of authorised investments and immovable property. Provided that all or any amount
of cash may during such time or times as the managers may think fit be retained in cash or on
deposit with any banker or building society approved by the Board and the managers.
35.2 The Board shall be entitled at any time at its entire discretion and without assigning
any reason to give notice to the managers that it is not prepared to accept the transfer of any
property which in the opinion of the Board infringes the terms of this Schedule and the Board
shall be entitled to require the managers to deposit in place of any such property other property
acceptable to the Board.
Realization of investments
36.1 Any investment comprised in the deposited property may at any time be realised at the
discretion of the managers either in order to provide cash required for the purpose of any
provision of this Schedule or in order to retain the proceedings of sale in cash or on deposit as
aforesaid or partly one and partly the other.
36.2 Investments and immovable property comprised in the deposited property shall be
realised by the managers, if so required by the Board, and the net proceeds of realisation shall
be applied in accordance with the provisions of this Schedule, but the managers may postpone
realisation of any such investment or immovable property for such period as they may
determine to be in the interest of the unit holders, unless the Board require them to be realised
without delay.
Mode of realization
37. Any sale of an investment for the account of the Unit Trust Account shall be made by
the managers or their nominee on the instruction of the managers with the approval of the
Board, and in the event of the managers receiving a share of any commission payable to the
brokers the managers shall be at liberty to retain it without being liable to account therefor.
Limit upon investments
38. The value of the Unit Trust Account’s holding of investments in any one company or
body shall be as determined by the managers and the Board from time to time.
Partly paid investments
39.1 The managers shall not be entitled without the consent of the Board to apply any part
of the deposited property in the acquisition of any investments or immovable property which are
for the time being partly paid only or otherwise in the opinion or the Board likely to involve the
Board in any liability. Provided that the selection of all investments or immovable property,
whether partly paid or not, shall in all respects be the responsibility of the managers solely and
not of the Board. If the Board consents to the acquisition of any partly paid investment or
immovable property it shall in all respects be the responsibility of the managers solely and not
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