,UHQHXV]+XU\N
2Q WKHRQH KDQG WKHMXGJHV UHVROYH GLVSXWHV DQGRQ
WKHRWKHUKDQGWKH\DVVHVVLIWKHREMHFWRISURFHHGLQJV
YLRODWHG WKH UXOHV RI HWKLFV 5HJDUGOHVV RI WKH FRQVH
TXHQFHVRIWKHFRQGXFWRIWKHDFFXVHGWRZDUGWKHYLF
WLPWKHYHU\IDFWRIYLRODWLRQRIWKHQRUPLVEODPHZRU
WK\
%DVLFUHTXLUHPHQWVRIWKH&RGHRI3URIHVVLRQDO(WKLFV
&RGLILFDWLRQRIQRUPVDQGHWKLFVRIDVSLUDWLRQV
7KHDVVXPSWLRQEHKLQGDFRGHZLWKRXWGHVFULSWLRQRI
YDOXHVDQGLGHDOVDGYRFDWHGE\FRUSRUDWLRQVLVWKDWLWLVD
PDQLIHVWDWLRQRIPRUDOLW\RIREOLJDWLRQVDQGQRWPRUDOLW\
RIDVSLUDWLRQV7KHWDVNRIVXFKDFRGHLVWRSURYLGHPLQL
PXP VWDQGDUGV RI FRQGXFW IRU WKH PHPEHUV RI WKH
&KDPEHUDQGQRWWRLQGLFDWHLGHDOVWREHSXUVXHGZKHUHDV
SURIHVVLRQDO HWKLFV RQ WKH RXWVHW VKRXOG DVVXPH KLJKHU
UHTXLUHPHQWV LQ FRPSDULVRQ WR WKH HQWLWLHV LW DGGUHVVHV
WKDQWKHUHTXLUHPHQWVVHWE\WKHQRUPVRIJHQHUDOHWKLFV
7KHFRGHFDQQRWEHMXVWLILHGRQO\E\VHFXULQJWKHLQWHUHVWV
RIWKHPHPEHUVRIWKHFRUSRUDWLRQ3XEOLFLQWHUHVWVKRXOG
UHPDLQ LWV EDVLF DVSHFW 7KH FRGH VKRXOG QRW SURYLGH
QRUPV ZKLFK DUH FRPPRQ DQ\ZD\ HLWKHU EXW LQGHHG LW
PXVW UHJXODWH WKH VSHFLILF SUREOHPV FRQQHFWHG ZLWK WKH
SHUIRUPDQFHRIWKHDUFKLWHFW¶VSURIHVVLRQ
&DUHIRUSXEOLFLQWHUHVWDQGVHFXULQJWKHLQWHUHVWV
RIWKHPHPEHUVRIWKHFRUSRUDWLRQ
7KH VLJQLILFDQFH RI WKH FRQGLWLRQV IRU WKH JURZLQJ
XQGHUVWDQGLQJWKDWWKHIXQGDPHQWDOSULQFLSOHVDUHQHFHV
VDU\ IRU DUFKLWHFWV LPSOLHV IHHGEDFN LQ WKH UHODWLRQV
EHWZHHQVRFLHW\DQGWKHPHPEHUVRIWKHFRUSRUDWLRQ,Q
WKHLUDFWLRQVDUFKLWHFWVDIIHFWYHU\VWURQJO\WKHVWDELOLW\RI
WKHHQYLURQPHQWWKHVKDSHRISXEOLFVSDFHVFRQVHUYDWLRQ
RIHQHUJ\DOORFDWLRQRIUHVRXUFHVHWFZKLFKLQWXUQEXU
GHQWKHPZLWKDORWRIUHVSRQVLELOLW\7KH\PXVWSRVVHVV
NQRZOHGJHRIYDULRXVQHHGVYDOXHVDQGFRQGXFWFKDUDF
WHULVWLFRIYDULRXVFXOWXUHVDVZHOODVWKHLQIOXHQFHRIWKDW
YDULDELOLW\ RQ WKH UROH RI WKH DUFKLWHFW LQ VRFLHW\ 7KH\
VKRXOGEHDZDUHRIWKHIDFWWKDWDUFKLWHFWXUDOHGXFDWLRQLV
QRWFRPSOHWHDWWKHPRPHQWZKHQWKH\JHWWKHLUTXDOLILFD
WLRQVEXWLWFRQWLQXHVWKURXJKRXWWKHLUZKROHOLYHVDQGLW
DOZD\V FRYHUV WKH XQGHUVWDQGLQJ RI DOO UHODWLRQV ERWK
EHWZHHQSHRSOHDQGWKHPDWWHUZKLFKLVWUDQVIRUPHG,WLV
QHFHVVDU\WRDVVXPHWKHSRVLWLRQRIRSHQQHVVWRFRQWLQX
RXVLPSURYHPHQWJURZWKDQGEURDGHQLQJRISHUVSHFWLYHV
LQRUGHUWRXQGHUVWDQGWKHSRZHURIWKHLULQIOXHQFH±WKH
SRZHU RI DUFKLWHFWXUH ,Q WKH OLJKW RI WKHVH DVSHFWV WKH
TXHVWLRQVRIWKHEHQHILWVIRUVRFLHW\DQGHWKLFDODFWLYLWLHV
EHFRPH HVSHFLDOO\ LPSRUWDQW7KH\ SURYLGH H[SRVXUH WR
FULWLFLVPDQGRSLQLRQVRQFUHDWLYHDFWVDQGFULWLFLVPFDQ
FDXVHDUFKLWHFWVWRIHHOWKUHDWHQHG,WLVGLIILFXOWIRUDUFKL
WHFWVWRJHWKRQHVWRSLQLRQVRQWKHLUDFWLYLWLHVKRZHYHULW
LVQHFHVVDU\IRUWKHLUSURIHVVLRQDOGHYHORSPHQW
6SHFLILFUHJXODWLRQVUHJDUGLQJWKHDUFKLWHFWV¶DFWLYLWLHV
7KHVWUXFWXUHRIRXU&RGHRI3URIHVVLRQDO(WKLFVLVUHOD
WLYHO\FOHDU 7KH OLVW RI QRUPV LV SUHFHGHG E\ D SUHDPEOH
ZKLFKVWLSXODWHVIRULQVWDQFHWKDWWKH&RGHSURYLGHVWKH>«@
UXOHV RI FRQGXFW ZKLFK DSSO\ WR DOO DUFKLWHFWV ZKR RIIHU
DUFKLWHFWXUDOVHUYLFHVZKLFKUHJDUGDOO SURIHVVLRQDODFWLYL
WLHV7KLV LV D SRVWXODWLYH SURYLVLRQ LQ LWV QDWXUH DQG LW LV
XQFOHDUDVLWLVLPSRVVLEOHWRHQIRUFHWKHREVHUYDQFHRIWKH
&RGHE\WKHDUFKLWHFWVZKRDUHQRWPHPEHUVRIWKH&KDPEHU
RI$UFKLWHFWV7KHFRQVHTXHQFHVRIVXFKDVLWXDWLRQDUHSLWL
IXOIRUWKHUHSXWDWLRQRIWKHDUFKLWHFW¶VSURIHVVLRQ
$QRWKHUVWUXFWXUDOHOHPHQWRIWKHFRGHLVDVKRUWQRWH
ZKLFKGHVFULEHVDUFKLWHFWXUDORUPXOWLGLVFLSOLQDU\ILUPV
DVHQWLWLHVZKLFKZRXOGEHVXEMHFWWRWKH&RGHRI(WKLFV
ZKLFKVHHPVDWOHDVWDZNZDUG7KLVLVDQRWKHUSRVWXODWH
ZKLFKGRHV QRWKDYH DQ\ FRQQHFWLRQZLWK SURYLVLRQVRI
WKH $FW RQ 3URIHVVLRQDO 6HOI*RYHUQPHQWV$UW VWLSX
ODWHV WKDW WKH WDVNV RI SURIHVVLRQDO VHOIJRYHUQPHQWV
LQFOXGHLQSDUWLFXODU>«@SURYLGLQJWKHSULQFLSOHVRISUR
IHVVLRQDO HWKLFV DQG VXSHUYLVLRQ RI WKHLU REVHUYDQFH$W
SUHVHQWVXFKVXSHUYLVLRQLVSRVVLEOHRQO\LQUHJDUGVRIWKH
PHPEHUVRIWKH&KDPEHU
7KHEDVLFFRQWHQWVRIWKHFRGHLQFOXGHIRXUSULQFLSOHV
JHQHUDO REOLJDWLRQV REOLJDWLRQV WR VRFLHW\ REOLJDWLRQV WR
FOLHQWVDQGREOLJDWLRQVWRWKHSURIHVVLRQ(DFKRIWKHSULQ
FLSOHV LQFOXGHV IXUWKHU UXOHV ZKRVH YLRODWLRQ FDQ EH WKH
EDVLV IRU LQLWLDWLRQ RI WKH GLVFLSOLQDU\ SURFHHGLQJV 7KH
RSLQLRQRIWKH6FUHHQHUIRU3URIHVVLRQDO/LDELOLW\ZKLFKLV
WKHEDVLVIRUWKHGLVFLSOLQDU\FRXUWWRLQLWLDWHWKHSURFHHG
LQJVVKRXOGHVWDEOLVKZKLFKUXOHRULWVSDUWZDVYLRODWHG,Q
WKHSURFHVVRILQWHUQDOWUDLQLQJVMXGJHVQRWLFHGDORWRISUR
YLVLRQVZKLFKVHHPWREHWRRJHQHUDORULPSUHFLVH/HWPH
LOOXVWUDWHWKDWZLWKDIUDJPHQWRIUXOH,Q
R
UGHU
W
R
D
VVXUH
WKH IXOILOOPHQWRIWKHUHTXLUHGSURIHVVLRQDOVWDQGDUGVWKH
DUFKLWHFWV ZKR DUH GLUHFWRUV VKDUHKROGHUV RU RZQHUV RI
ILUPVVKDOOKDYHTXDOLILHGDQGSURSHUO\VXSHUYLVHGHPSOR\
HHV DV ZHOO DV DGHTXDWHO\ DQG HIIHFWLYHO\ DSSO\ LQWHUQDO
UXOHVRIFRQGXFW6LPLODUJHQHUDOLQVWUXFWLRQVDUHLQFOXGHG
LQUXOH,QWKHLUZRUNDUFKLWHFWVVKDOOUHVSHFWWKHH[LVW
LQJYDOXHVQDWXUDODQGFXOWXUDOLQKHULWDQFHDQGWKH\VKDOO
FDUH IRU WKHLU PDLQWHQDQFH DQG GHYHORSPHQW 7KH\ VKDOO
VWULYHWRLPSURYHWKHTXDOLW\RIOLIHDQGUHVLGHQFHDVZHOODV
WKH TXDOLW\ RI HQYLURQPHQW DQG VXUURXQGLQJ LQ WKH ZD\
ZKLFKZRXOGQRWYLRODWHWKHLUEDODQFHEHLQJFRPPLWWHGLQ
WKHLUDFWLRQVWRWKHHIIHFWVRIWKHLUZRUNZKLFKZRXOGEHQ
HILW LQ D EURDG VHQVH WKH LQWHUHVWV RI DOO WKRVH ZKR FDQ
H[SHFWEHQHILWVDQGVDWLVIDFWLRQIURPWKHP
7KHUHDUHPRUHVLPLODUSURYLVLRQVEXWPD\WKRVHWZR
H[DPSOHVWHVWLI\WRWKHSRVVLELOLWLHVRIVXSHUYLVLRQRIWKH
REVHUYDQFHRIWKHFRGH
6FRSHLQUHVSHFWRIDSSOLFDWLRQRISULQFLSOHVQRW
RQO\LQUHODWLRQWRFRQGXFWZKLFKLVGLUHFWO\FRQ
QHFWHGZLWKWKHSUDFWLFHLQWKHSURIHVVLRQ
)RUPXODWLQJ WKH SULQFLSOHV RI SURIHVVLRQDO HWKLFV
VKRXOGEHEDVHGRQWKHDVVXPSWLRQWKDWWKHPHPEHUVRIWKH
&KDPEHU RI$UFKLWHFWV VKDOO DFW LQ FRPSOLDQFH ZLWK WKH
FRGH RI HWKLFVQRW RQO\ ZKHQ WKHLU DFWLYLWLHVDUHGLUHFWO\
FRQQHFWHGZLWKWKHSHUIRUPDQFHRISURIHVVLRQDOGXWLHV'XH