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The directors of a mutual fund shall take reasonable care-

(a) to ensure that the property of the mutual fund is managed by the manager in accordance with this Law, Regulations made under it and the constitution or regulations of the mutual fund;

(b) that the manager performs its functions and discharges its duties under this Law and Regulations made under it; and

(c) that the methods used by the manager to calculate prices at which shares are issued and redeemed are legal; and shall carry out periodic checks to verify whether the manager has determined prices within those limits. [As substituted by Securities Industry (Amendment) Act, 2000 (Act 590) s. 10]