Part 6Venture capital trusts

Chapter 6Supplementary and general

Acquisitions for restructuring purposes

328Supplementary

1

Subject to subsection (2), references in sections 326 and 327 and this section, except in the expression “subscriber shares”, to shares in a company include references to any securities of that company.

2

For the purposes of subsection (1) a relevant security of the old company is not to be treated as a security of the old company if—

a

the arrangements do not provide for the acquisition of the security by the new company, or

b

such treatment prevents section 326(1)(b) from being met in connection with the arrangements.

3

In subsection (2) “relevant security” means an instrument which is a security for the purposes of Chapter 4 merely because of section 285(2).

4

References in section 327 to the period for giving effect to the arrangements are references to the period which—

a

begins with the time when the arrangements first came into existence, and

b

ends with the time when the new company completes its acquisition under the arrangements of all the old shares.

5

For the purposes of sections 326 and 327 and this section—

a

old shares and new shares are of a corresponding description if, were they shares in the same company, they would be of the same description, and

b

old shares and new shares are matching shares in relation to each other if the old shares are the shares for which the new shares are exchanged under the arrangements.