The Impact of Trust and Company Law on Institutional Investors and Combined Codees Expectation

Abstract

The nature of investments and investors has changed with the passage of time. The institutional investors participate or monitor the corporate activities by direct and indirect methods. The aim of investment is to minimise the investment risks through diversification of holdings. The general principles of law of trust are also applicable to the unit trust and pension funds for specific purposes. The occupational pension’s scheme is normally established or organised as a trust. It is presumed that the unit trust is merely an extension of the private trust into the corporate sector. Historically, there are four themes relating to the perception of unit trust and company. The expression of ‘mutual funds’ is familiar in American Continent. The courts of common law jurisdiction are lenient to apply the principles of company to resolve the issues relating to unit trusts. The unit trust and investment trust are different to their constitution and expression.