2(1)Paragraph 2 of Part I of Schedule 2 is amended as follows.U.K.
(2)At the beginning of sub-paragraph (1) there is inserted “ Subject to sub-paragraph (1A) ”.
(3)After sub-paragraph (1) there is inserted—
“(1A)For the purposes of this Schedule, a person’s holding of shares, or possession of voting power, in a body corporate shall be disregarded if, or to the extent that—
(a)he holds the shares concerned—
(i)as a nominee,
(ii)as a custodian (whether under a trust or by a contract), or
(iii)under an arrangement pursuant to which he has issued, or is to issue, depositary receipts, as defined by section 220(1) of the Companies Act 1985, in respect of the shares concerned, and
(b)he is not entitled to exercise or control the exercise of voting rights in respect of the shares concerned.
(1B)For the purposes of sub-paragraph (1A)(b)—
(a)a person is not entitled to exercise or control the exercise of voting rights in respect of shares if he is bound (whether by contract or otherwise) not to exercise the voting rights, or not to exercise them otherwise than in accordance with the instructions of another, and
(b)voting rights which a person is entitled to exercise or of which he is entitled to control the exercise only in certain circumstances shall be taken into account only when those circumstances have arisen and for as long as they continue to obtain.”
Commencement Information
I1Sch. 2 para. 2 wholly in force at 1.11.1996; Sch. 2 para. 2 not in force at Royal Assent see s. 149; Sch. 2 para. 2 in force for certain purposes at 10.8.1996 and wholly in force at 1.11.1996 by S.I. 1996/2120, art. 3, 4, Sch. 1