COLL 12.6.10 Transactions with affected persons—REITs

(1) The operator of a REIT need not comply with rules 5.1.3 and 5.1.4 (relating to notice and approval) for a transaction with an affected person if:
(a) the transaction is for the acquisition or sale of an immovable in Qatar;
(b) the operator has general unitholder approval to enter into such a transaction; and
(c) the fund's independent entity has confirmed in writing, before the transaction is entered into:
(i) that the transaction is on terms that comply with the requirement to negotiate at arm's length in rule 5.1.2 (2) (a); and
(ii) that all other requirements have been complied with.
(2) For subrule (1) (b), the unitholder approval must be by ordinary resolution passed at the previous annual general meeting of the fund. A unitholder who is an affected person proposing to enter into an affected person transaction, or a unitholder who is an associate of the affected person, must not vote on the resolution.
(3) The resolution must authorise the operator to enter into transactions with affected persons for the acquisition or sale of immovables in Qatar without obtaining prior unitholder approval in each case during the period for which the resolution is valid. The resolution is valid only until the date of the next annual general meeting of the fund (when it may be renewed).

Note The operator of a REIT must disclose the existence of such an approval in the fund's prospectus (see rule S5.20 (2)).
(4) If the operator of a REIT enters into a transaction with an affected person under this rule, the operator must notify unitholders of the details of the transaction, including the identity of the affected person and the nature and extent of the person's interest. The notice must be given as soon as practicable after entering into the transaction.

Note For service and form of notices to unitholders, see rules 11.1.2 and 11.1.3. Notice may be given in the fund's latest filed prospectus.
(5) If the operator operates more than 1 fund and a transaction involves 2 or more of them, the transaction is taken to be a transaction with an affected person for each fund.
Inserted by QFCRA RM/2016-1 (as from 19th September 2016)