ACT 125

COMPANIES ACT 1965 (REVISED - 1973)

PART XI - VARIOUS TYPES OF COMPANIES, ETC.

DIVISION 1 - INVESTMENT COMPANIES

Section 321. Restriction on investments of investment companies.

(1) An investment company shall not invest an amount in a corporation if that amount, or the sum of that amount and amounts previously invested by it in that corporation and still so invested exceeds an amount equivalent to ten per centum of the net tangible assets of the investment company. (2) An investment company shall not invest an amount in the ordinary shares of a corporation if that amount, or the sum of that amount and amounts previously invested by it in the ordinary shares of that corporation and still so invested exceeds an amount equivalent to ten per centum of the subscribed ordinary share capital of the corporation. (3) Subsection (2) shall not apply in respect of a wholly-owned subsidiary of an investment company for the purpose of carrying out nominee, underwriting, dealing or other functions incidental to the business of an investment company.