Fund Office Definition | Law Insider (2024)

FAQs

What is the legal definition of a fund? ›

A collection of assets managed in accordance with an objective for the mutual benefit of all the investors.

What is Sufficiency of Funds? In this section, the Buyer provides information regarding its ability to fund the acquisition. It is part of the Representations and Warranties of Buyer section. The Representations and Warranties of Buyer portion of the Agreement is used to save the Seller time and money.

Rule 10b5-2 addresses the issue of when a breach of a family or other non-business relationship may give rise to liability under the misappropriation theory of insider trading.

Section 16(b) of the act recognizes that profits realized by officers, directors, or 10-percent stockholders from any purchase and sale or any sale and purchase of any equity security within a period of 6 months rightfully belong to the corporation and should be recoverable in an action by, or on behalf of, the ...

A fund is a pool of money set aside for a specific purpose. The pool of money in a fund is often invested and professionally managed in order to generate returns for its investors. Some common types of funds include pension funds, insurance funds, foundations, and endowments.

The fund does not have a separate legal entity status as it falls under the umbrella of the parent organisation. Funds are governed by their specific Rules & Regulations. Members do not enjoy separate legal identity status and are thus exposed to liability issues.

Proof of funds refers to a document that demonstrates the ability of an individual or entity to pay for a specific transaction. A bank statement, security statement, or custody statement usually qualify as proof of funds. Proof of funds is typically required for a large transaction, such as the purchase of a house.

Proof of funds usually comes in the form of a bank security or custody statement. These can be procured from your bank or the financial institution that holds your money. Bank statements are the most common document to use as POF and can typically be found online or at a bank branch.

Rule 10b-5 covers instances of insider trading, wherein an insider or executive uses nonpublic information to influence share prices to their benefit: Employment of Manipulative and Deceptive Practices.

What is 10b 21 rule? ›

On March 17, 2008, the Securities and Exchange Commission (the “SEC”) proposed a new antifraud rule, Rule 10b-21, under the Securities Exchange Act of 1934 (the “Exchange Act”) to address failures to deliver securities in settlement of securities trades, with a particular focus on “naked” short selling.

If you lost money on an investment because of false or misleading information, you may have a case for securities fraud. Frank LLP's attorneys help investors around the world to recover their losses through class action lawsuits, as well as individual lawsuits on behalf of large investors such as pension funds.

What Are Blue Sky Laws? Blue sky laws are state regulations established as safeguards for investors against securities fraud. The laws, which may vary by state, typically require sellers of new issues to register their offerings and provide financial details of the deal and the entities involved.

Section 16(a) of the Exchange Act requires that directors and officers of a company that has a class of securities registered under Section 12 of the Exchange Act (a “public company”), as well as persons who beneficially own more than 10% of any class of equity security which is registered under Section 12 of the ...

The short-swing profit rule comes from Section 16(b) of the Securities Exchange Act of 1934. The rule was implemented to prevent insiders, who have greater access to material company information, from taking advantage of information for the purpose of making short-term profits.

FUNDS Definition & Legal Meaning

Available monies. Or, money-raising charitable accounts. For a company, it is the cash in hand, bank balances, accounts receivable.

Funds are typically structured as either companies, unit trusts or limited partnerships.

The Generally Accepted Accounting Principles (GAAP) basis classification divides funds into three fund categories: governmental, proprietary, and fiduciary.

All funds are made up of a mix of investments – this is what diversifies or spreads your risk. For example, a UK equity fund is likely to hold a wide number of stocks from a broad set of different British industry sectors. Funds typically consist of one single asset type, usually either shares or bonds.