(1) A trustee of a unit trust or directors of a mutual fund, shall give written notice to die Commission of any proposal to replace a manager of a scheme and seek the approval of die Commission and die Commission shall acknowledge receipt in writing within seven days of receipt.

(2) Where the Commission does not indicate its decision on the proposal within a period of sixty days after the submission, it may be assumed that there has been approval.

(3) The manager shall be replaced by a person who satisfies the requirements of this Act.

(4) The manager shall cease to hold office where

(a) the manager goes into liquidation, except a voluntary liquidation to reconstruct or amalgamate on terms previously approved in writing by the trustee or directors;

(b) a receiver is appointed in respect of the unit trust or mutual fund;

(c) the unit holders or shareholders decide to remove the manager in terms of this Act; or

(d) the trustee of a unit trust or the directors of a mutual fund state in writing giving reasons that a change of manager is desirable in the interest of the investors and the Commission approves.

(5) Where the name of the scheme makes reference to the name of die former manager, die former manager may require the new manager to propose a change in the name of the scheme.

(6) Where the manager ceases to act as a manager, the trustee of a unit trust or the directors of the mutual fund shall appoint a person eligible under this Act to be the manager of the scheme subject to person entering into an agreement with die trustee of die unit trust or the directors of the mutual fund to secure the due performance of its functions as manager.