The articles of association of FIA Leveraged Fund (the “Fund”) permitted the holder of any class of participating shares the right to be redeemed on delivery of a redemption request. The Fund was obliged to redeem at the value fixed on the redemption date. Payment could be made in cash or in-kind. In response to a redemption request, the Fund transferred to the redeeming investors certain shares in another entity which were not assets of the Fund on the redemption date. In fact, the Company whose shares were so transferred was not in existence at the relevant date.
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FIA Leveraged Fund -v- Firefighters’ Retirement System, New Orleans Firefighters Pension & Relief Fund, Municipal Employees Retirement System of Louisiana, CICA Appeal No. 6 of 2012, Cause No. FSD 0013/2012, Chadwick J., President, 18 February 2013