Companies Act 1985

2 (1) The following has effect as regards the operation of sections 23, 144, 145 and 146 to 149 in cases where a residual interest vests in possession.

(2) Where by virtue of the vesting in possession of a residual interest a subsidiary ceases to be exempt from section 23, that section does not prevent the subsidiary from continuing to be a member of its holding company ; but subject to subsection (4) of that section, the subsidiary has no right from the date of vesting to vote at meetings of the holding company or any class of its members.

(3) Where by virtue of paragraph 1 of this Schedule any shares are exempt from section 144 or 145 at the time when they are issued or acquired but the residual interest in question vests in possession before they are disposed of or fully paid up, those sections apply to the shares as if they had been issued or acquired on the date on which that interest vests in possession.

(4) Where by virtue of paragraph 1 any shares are exempt from sections 146 to 149 at the lime when they are acquired but the residual interest in question vests in possession before they are disposed of, those sections apply to the shares as if they had been acquired on the date on which that interest vests in possession.

(5) The above sub-paragraphs apply irrespective of the date on which the residual interest vests or vested in possession; but where the date on which it vested was before 26th July 1983 (the passing of the [1983 c. 50.] Companies (Beneficial Interests) Act 1983), they have effect as if the vesting had occurred on that date.