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Glossary of terms

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Managing director of a limited liability company

Managing director is the statutory body of a limited liability company. He is in charge of acting on behalf of the company. The statutory body of a limited liability company is one or more directors (the number is stated in the social contract). Managing director can only be a natural person who fulfils the conditions for the operation of the trade - the majority, the integrity etc.

Mutual fund

A mutual fund is a collection of assets that belongs  to all owners of mutual fund shares, the shareholders, in proportion to shares owned.

Mutual fund is not a legal person. Finances to the mutual fund are collected by an investment company. Mutual fund share is a security that represents a shareholder's share in the assets of a mutual fund and other rights. A mutual fund may be open or closed.

Open mutual fund
It does not limit the number of issued shares. Shares are connected with the right of redemption by the investment company at the request of its owner, it does not have to have a nominal value. In the case of purchase, the investment company will purchase a mutual fund share for its current value announced to the date on which the shareholder has received a request for redemption.

Closed mutual fund
Investment company does not redeem mutual fund shares. The name of the fund consists of the name of the managing investment company and of identification of closed mutual fund. The closed mutual fund is set up for a fixed period, which must be stated in the statute.

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