1.5

​Definition of "public" in relation to a business trust

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​​(i)

Under paragraph 1.01 of the Main LR, the definition of "public" in relation to business trust excludes subsidiary entity as defined under the SC's Business Trust Guidelines. What is a subsidiary entity?

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Under paragraph 2.01 of the SC's Business Trust Guidelines, "subsidiary entity" is defined to mean any corporation or other entity where:

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​(a)

​the trustee-manager (acting in its capacity as trustee-manager of the business trust) –

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​​​(i)

​controls the composition of the board of directors of the corporation or board of persons of the entity which performs similar function as with a board of directors of a corporation, ("Board");

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​​​​(ii)

​controls more than half the voting shares of the corporation or voting rights of the entity; or

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​​​​(iii)

holds more than half of the issued share capital of the corporation (excluding preference shares) or its equivalent in the case of the entity; or

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(b)

​​the corporation or entity is a subsidiary entity of another corporation or entity which is a subsidiary entity of the business trust.

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Based on the above definition, apart from a corporation, a subsidiary entity of a business trust may include, among others, the following:

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​​a collective investment scheme;

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​a management company of a collective investment scheme whose board of directors is controlled by the trustee-manager; or

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​a subsidiary of the trustee-manager.