EDMONTON, Alberta -

Carfinco Income Fund took a few big steps this week as part of its process to transition from being an income trust to becoming a new corporation.

Carfinco revealed Wednesday that it has struck an arrangement agreement with the new corporation — to be named Carfinco Financial Group — which is one of the required steps it has to take to conduct the conversion.

Additionally, Carfinco was granted an interim order from the Court of Queen’s Bench of Alberta — another required step — that gives it permission for several items, including calling for a special unit-holders meeting to vote on the arrangement.

That meeting is slated for Nov. 21.

The arrangement mandates that the unit-holders approve the agreement at the meeting. It is also required that the Court of Queen’s Bench of Alberta issues a final order approving the arrangement. There will be a hearing on Nov. 23 in Edmonton to gain that approval.

Lastly, it is required that the arrangement meet customary commercial conditions, among those being receipt of the Toronto Stock Exchange giving its regulatory approvals.

If all the unit-holders approve and all the aforementioned conditions are met, the arrangement is slated to take effect Jan. 1.

“Under the arrangement, it is intended that unit-holders will receive, on a tax-deferred basis, one common share of New Carfinco, on a one-for-one basis for each fund unit held,” officials noted.

“All current members of the board of trustees and senior management are expected to continue serving as the directors, officers and management of New Carfinco,” they added.