Unitholders of CI Financial Income Fund have approved proposals to convert the fund to a corporation and to adopt a Unitholder Rights Plan, the fund announced on Friday.

The conversion proposal received more than 99% approval and more than 95% of unitholders approved the rights plan.

The conversion is subject to court approval and is expected to be completed on Jan. 1, 2009. CI will be renamed CI Financial Corp. and its common shares will trade on the Toronto Stock Exchange beginning Jan. 5, 2009, under the symbol CIX.

“Converting back to a corporation, along with the successful equity offering announced earlier this week, puts CI in an exceptionally strong position to pursue acquisitions and other strategic opportunities that are arising in today’s marketplace,” said CEO Bill Holland in release.

“We are pleased to proceed with the next stage of the company’s development,” Holland added. “Clearly, the corporate structure became the most appropriate choice for our stakeholders once the federal government chose to place onerous restrictions on existing income trusts and effectively eliminate the trust sector.”

The Unitholder Rights Plan is designed to ensure fair treatment for unitholders in any transaction that involves changes in control. It also gives unitholders adequate time to evaluate any unsolicited takeover bid and explore alternatives.

The rights plan will remain in force as a Shareholders Rights Plan following the conversion.

IE