Part 1Special Resolution Regime

Chapter 3 Special resolution action

Transfer of securities

17Effect

(1)

In this section “transfer” means a transfer provided for by a share transfer instrument or orderF1, by a mandatory reduction instrument F2or by a resolution instrument.

(2)

A transfer takes effect by virtue of the instrument or order (and in accordance with its provisions as to timing or other ancillary matters).

(3)

A transfer takes effect despite any restriction arising by virtue of contract or legislation or in any other way.

(4)

In subsection (3) “restriction” includes—

(a)

any restriction, inability or incapacity affecting what can and cannot be assigned or transferred (whether generally or by a particular person), and

(b)

a requirement for consent (by any name).

(5)

A share transfer instrument or orderF3, a mandatory reduction instrument F4or a resolution instrument may provide for a transfer to take effect free from any trust, liability or other encumbrance (and may include provision about their extinguishment).

(6)

A share transfer instrument or orderF5, a mandatory reduction instrument F6or a resolution instrument may extinguish rights to acquire securities falling within Class 1 or 2 in section 14.