(1)This section modifies the operation of sections 78 and 79 above as they apply to instruments executed on or after 1st August 1985.
(2)In sections 78 and 79 " shares " includes stock.
(3)References in sections 78 and 79 to shares in company B include references to excessive return capital of the company; and " excessive return capital" means loan capital to which section 126(1) of the [1976 c. 40.] Finance Act 1976 does not apply by virtue of section 126(3).
(4)The terms of a general offer or other arrangement shall be disregarded for the purposes of sections 78(4) and 79(4) to the extent that they provide for the sale of securities to a person other than company A.
(5)Section 78(5) shall have effect as if for the words from " unless " to the end there were substituted " unless—
(a)they are registered, in a register kept by or on behalf of company A, in the name of the person transferring the shares in company B by way of the exchange, or
(b)they are registered, in such a register, in the name of company B and are held on trust for the person so transferring."
(6)In section 78(8) the reference to members of company B includes a reference to persons entitled to the company's convertible loan capital (within the meaning of section 78(6)) or to its excessive return capital (within the meaning of subsection (3) above).