Commonwealth Development Corporation Act 1999

12 (1) Section 266 of the [1985 c. 6.] Companies Act 1985 (investment company) shall have effect with the omission of subsection (2)(d) in relation to any accounting reference period which—

(a) falls within the exempt period, or

(b) begins before and ends within the exempt period.

(2) Section 842(1A)(a) of the Income and Corporation Taxes Act 1988 (holdings in groups) shall not apply for the purposes of determining whether the Corporation complies with the requirement in section 266(2)(b) of the Companies Act 1985 at any time during the exempt period.

(3) Paragraph 73(a) of Schedule 4 to the Companies Act 1985 (company accounts: investment company) shall be taken to be satisfied in relation to the financial year of the Corporation during which it first becomes an investment company.

(4) If at any time which falls within the exempt period and within the first period during which the Corporation is an investment company—

(a) the Corporation is prohibited under section 265(4) of that Act from making a distribution by virtue of that section, and

(b) the prohibition arises by reason only that the condition in section 265(4)(a) is not satisfied,

the prohibition shall be ignored for the purposes of paragraph 73(b) of Schedule 4 to that Act.

(5) In this paragraph—

• “the exempt period” means the exempt period for the purposes of Schedule 3 to this Act, and

• “investment company” has the meaning assigned by section 266(1) of that Act.