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Companies Consolidation (Consequential Provisions) Act 1985

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12Share premiums: retrospective relief

(1)The relief given by this section (being a replacement of section 39 of the [1981 c. 62.] Companies Act 1981) applies only where a company has issued shares in circumstances to which this section applies before 4th February 1981.

(2)Subject as follows, this section applies where the issuing company (that is, the company issuing shares as mentioned in section 130 of the principal Act) has issued at a premium shares which were allotted in pursuance of any arrangement providing for the allotment of snares in the issuing company on terms that the consideration for the shares allotted was to be provided by the issue or transfer to the issuing company of shares in another company or by the cancellation of any shares in that other company not held by the issuing company.

(3)The other company in question must either have been at the time of the arrangement a subsidiary of the issuing company or of any company which was then the issuing company's holding company or have become such a subsidiary on the acquisition or cancellation of its shares in pursuance of the arrangement

(4)Any part of the premiums on the shares so issued which was not transferred to the company's share premium account in accordance with section 56 of the Act of 1948 shall be treated as if that section had never applied to those premiums (and may accordingly be disregarded in determining the sum to be included in the company's share premium account).

(5)Section 133(2) and (3) of the principal Act apply for the interpretation of this section; and for the purposes of this section—

(a)" company" (except in references to the issuing company) includes any body corporate, and

(b)the definition of "arrangement" in section 131(7) of the principal Act applies.

(6)This section is deemed included in Chapter III of Part V of the principal Act for the purpose of the Secretary of State's power under section 134 of that Act to make regulations in respect of relief from the requirements of section 130 of that Act.

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