SCHEDULES
SCHEDULE 2INTERPRETATION OF REFERNECES TO “BENEFICIAL INTEREST”
F2PART IF2REFERENCES IN ARTICLES 33, 155, 156 AND 158
Residual interests under pension and employees' share schemes
1
1
Where shares in a company are held on trust for the purposes of a pension scheme or an employees' share scheme, there is to be disregarded any residual interest which has not vested in possession, being an interest of the company or,F3 as this paragraph applies for the purposes of Article 33(2),F4. . . of any subsidiary of the company.
2
In this paragraph, “a residual interest” means a right of the company or subsidiary in question ( “the residual beneficiary”) to receive any of the trust property in the event of—
a
all the liabilities arising under the scheme having been satisfied or provided for, or
b
the residual beneficiary ceasing to participate in the scheme, or
c
the trust property at any time exceeding what is necessary for satisfying the liabilities arising or expected to arise under the scheme.
3
In sub-paragraph (2), references to a right include a right dependent on the exercise of a discretion vested by the scheme in the trustee or any other person; and references to liabilities arising under a scheme include liabilities that have resulted or may result from the exercise of any such discretion.
4
For the purposes of this paragraph, a residual interest vests in possession—
a
in a case within head (a) of sub-paragraph (2), on the occurrence of the event there mentioned, whether or not the amount of the property receivable pursuant to the right mentioned in that sub-paragraph is then ascertained; and
b
in a case within head (b) or (c) of that sub-paragraph, when the residual beneficiary becomes entitled to require the trustee to transfer to that beneficiary any of the property receivable pursuant to that right.
Sub-para. (5) rep. by 1990 NI 5
2
1
This paragraph has effect as regards the operation of ArticlesF5. . . 154, 155, 156 and 158 in cases where a residual interest vests in possession.
Sub-para. (2) rep. by 1990 NI 5
3
Where by virtue of paragraph 1 any shares are exempt from Article 154 or 155 at the time when they are issued or acquired but the residual interest in question vests in possession before they are disposed of or fully paid up, those Articles apply to the shares as if they had been issued or acquired on the date on which that interest vests in possession.
4
Where by virtue of paragraph 1 any shares are exempt from Articles 156 to 159 at the time when they are acquired but the residual interest in question vests in possession before they are disposed of, those Articles apply to the shares as if they had been acquired on the date on which that interest vests in possession.
5
Sub-paragraphs (1) to (4) apply irrespective of the date on which the residual interest vests or vested in possession; but where the date on which it vested was before 3rd August 1983 (the date on which the Order of 1983 came into operation), they have effect as if the vesting had occurred on that date.
1990 NI 5