Sponsor de-classification permitted subject to unit-holder approval, concentration limits and exit option for dissenting unitholders. The Regulations permit de-classification of sponsor status for REITs listed three years, subject to conditions: sponsor and associate holdings together not exceeding ten percent, the REIT manager not controlled by the sponsor or associates, sponsors not being fugitive economic offenders, and obtaining unit-holder approval as required under Regulation 22(5). They add the term 'inducted sponsor,' expand eligible sponsors to include insurance companies and mutual funds, cap non-sponsor investor subscription at twenty-five percent, and require seventy-five percent unit-holder approval for acquisitions exceeding twenty-five percent, with an exit option for dissenters if approval is not obtained.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Sponsor de-classification permitted subject to unit-holder approval, concentration limits and exit option for dissenting unitholders.
The Regulations permit de-classification of sponsor status for REITs listed three years, subject to conditions: sponsor and associate holdings together not exceeding ten percent, the REIT manager not controlled by the sponsor or associates, sponsors not being fugitive economic offenders, and obtaining unit-holder approval as required under Regulation 22(5). They add the term "inducted sponsor," expand eligible sponsors to include insurance companies and mutual funds, cap non-sponsor investor subscription at twenty-five percent, and require seventy-five percent unit-holder approval for acquisitions exceeding twenty-five percent, with an exit option for dissenters if approval is not obtained.
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