Yn ddilys o 24/07/2002
[F1209A Section 209(3AA): link to shares of company or associated companyU.K.
(1)Subsection (3AA) of section 209 does not apply in relation to a security issued by a company (the “issuing company”) if the security is one which to a significant extent reflects dividends or other distributions in respect of, or fluctuations in the value of, shares in one or more companies each of which is—
(a)the issuing company; or
(b)an associated company of the issuing company;
but this subsection is subject to the following provisions of this section.
(2)Subsection (1) above does not prevent subsection (3AA) of section 209 above from applying in relation to a security if—
(a)the issuing company is a bank or securities house;
(b)the security is issued by the issuing company in the ordinary course of its business; and
(c)the security reflects dividends or other distributions in respect of, or fluctuations in the value of, shares in companies falling within paragraph (a) or (b) of subsection (1) above by reason only that the security reflects fluctuations in a qualifying index.
(3)In subsection (2)(c) above “qualifying index” means an index whose underlying subject matter includes both—
(a)shares in one or more companies falling within paragraph (a) or (b) of subsection (1) above, and
(b)shares in one or more companies falling within neither of those paragraphs,
and which is an index such that the shares falling within paragraph (b) above represent a significant proportion of the market value of the underlying subject matter of the index.
(4)In this section—
“bank” has the meaning given by section 840A;
“securities house” means any person—
(a)who is authorised for the purposes of the Financial Services and Markets Act 2000; and
(b)whose business consists wholly or mainly of dealing in financial instruments as principal;
and in paragraph (b) above “financial instrument” has the meaning given by section 349(5) and (6).
(5)For the purposes of this section a company is an “associated company” of another at any time if at that time one has control of the other or both are under the control of the same person or persons.
(6)For the purposes of subsection (5) above, “control”, in relation to a company, means the power of a person to secure—
(a)by means of the holding of shares or the possession of voting power in or in relation to the company or any other company, or
(b)by virtue of any powers conferred by the articles of association or other document regulating the company or any other company,
that the affairs of the company are conducted in accordance with his wishes.
(7)There shall be left out of account for the purposes of subsection (6) above—
(a)any shares held by a company, and
(b)any voting power or other powers arising from shares held by a company,
if a profit on a sale of the shares would be treated as a trading receipt of a trade carried on by the company and the shares are not, within the meaning of Chapter 1 of Part 12, assets of an insurance company’s long-term insurance fund (see section 431(2)).]