Paragraph 28: Shares must be fully paid up and not redeemable
3032.This paragraph provides that eligible shares must be fully paid up and not redeemable. It derives from paragraph 62 of Schedule 8.
3033.In sub-paragraph (2), the words “for the purposes of sub-paragraph (1)(a)” have been moved to the beginning of the sentence. This change brings this sub-paragraph into better alignment with sub-paragraph (3), and makes it easier to grasp the relationship with sub-paragraph (1). Sub-paragraph (2) also contains new additional wording to make it clear that the payment of cash is to be made to the company whose shares are being issued.
3034.Sub-paragraphs (4) and (5) abbreviate the material in paragraph 62(4) and (5) of Schedule 8. In that Schedule, it is provided that sub-paragraph (1)(b) does not apply in relation to shares in a co-operative. The term “co-operative” is then defined as “a registered industrial and provident society which is a co-operative society”; and the terms “registered industrial and provident society” and “co-operative society” then receive definitions of their own. (This legislation was amended while the Finance Act 2000 was before Parliament.).
3035.In this Act the term “co-operative” has been omitted. It is provided instead (in sub-paragraph (4)) that sub-paragraph (1)(b) does not apply to shares in a registered industrial and provident society which is a co-operative society; and then, as before, the terms “registered industrial and provident society” and “co-operative society” are defined. This procedure enables the term “co-operative” to be omitted.