The Open-Ended Investment Companies Regulations 2001

2.  An open-ended investment company may apply to the court under section 425 of the 1985 Act(1) (power of company to compromise with creditors and members) for an order sanctioning a scheme falling within any of sub-paragraphs (a) to (c) of paragraph 4(1) where—

(a) the scheme in question involves a compromise or arrangement with its shareholders or creditors or any class of its shareholders or creditors; and

(b) the consideration for the transfer or each of the transfers envisaged by the scheme is to be—

(i) shares in the transferee company receivable by shareholders of the transferor company; or

(ii) where there is more than one transferor company and any one or more of them is a public company, shares in the transferee company receivable by shareholders or members of the transferor companies (as the case may be);

in each case with or without any cash payment to shareholders.

(1)

Section 425 was amended by section 109(1) of, and paragraph 11 of Schedule 6 to, the Insolvency Act 1985 (c. 65).