(1)Where shares in a company are held on trust for the purposes of a pension scheme or employees' share scheme, there shall be disregarded for the purposes of section 138 any residual interest that has not vested in possession.
(2)A “residual interest” means a right of the company or subsidiary (“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 subsection (2)—
(a)the reference to a right includes a right dependent on the exercise of a discretion vested by the scheme in the trustee or another person, and
(b)the reference to liabilities arising under a scheme includes liabilities that have resulted, or may result, from the exercise of any such discretion.
(4)For the purposes of this section a residual interest vests in possession—
(a)in a case within subsection (2)(a), on the occurrence of the event mentioned there (whether or not the amount of the property receivable pursuant to the right is ascertained);
(b)in a case within subsection (2)(b) or (c), when the residual beneficiary becomes entitled to require the trustee to transfer to him any of the property receivable pursuant to the right.
(5)In this section “pension scheme” means a scheme for the provision of benefits consisting of or including relevant benefits for or in respect of employees or former employees.
(6)In subsection (5)—
(a)“relevant benefits” means any pension, lump sum, gratuity or other like benefit given or to be given on retirement or on death or in anticipation of retirement or, in connection with past service, after retirement or death; and
(b)“employee” shall be read as if a director of a company were employed by it.