37(1)A participant may direct the trustees to do any of the following during the holding period.U.K.
(2)The participant may direct the trustees to accept an offer for any of the participant’s free shares (“the original shares”) if the acceptance or agreement will result in a new holding being equated with the original shares for the purposes of capital gains tax.
(3)The participant may direct the trustees to agree to a transaction affecting the participant’s free shares, or such of them as are of a particular class, if the transaction would be entered into as a result of a compromise, arrangement or scheme applicable to or affecting—
(a)all the ordinary share capital of the company or, as the case may be, all the shares of the class in question, or
(b)all the shares, or all the shares of the class in question, which are held by a class of shareholders identified otherwise than by reference to their employment or their participation in [F1a Schedule 2] SIP.
(4)The participant may direct the trustees to accept an offer for the participant’s free shares of—
(a)cash, with or without other assets, or
(b)a qualifying corporate bond (whether alone or with other assets or cash or both),
if the offer forms part of a general offer falling within sub-paragraph (5).
(5)A general offer falls within this sub-paragraph if—
(a)it is made to holders of shares of the same class as the participant’s or to holders of shares in the same company, and
(b)it is made in the first instance on a condition such that if it is satisfied the person making the offer will have control of that company.
(6)In sub-paragraph (5) “control” has the meaning given by [F2sections 450 and 451 of CTA 2010].
[F3(7)For the purposes of sub-paragraph (5) it does not matter if the general offer is made to different shareholders by different means.
(8)If in the case of a takeover offer (as defined in section 974 of the Companies Act 2006) there arises a right under section 983 of that Act to require the offeror to acquire the participant's free shares, or such of them as are of a particular class, the participant may direct the trustees to exercise that right.]
Textual Amendments
F1Words in Sch. 2 para. 37(3)(b) substituted (6.4.2014) by Finance Act 2014 (c. 26), Sch. 8 paras. 22, 89 (with Sch. 8 paras. 90-96)
F2Words in Sch. 2 para. 37(6) substituted (with effect in accordance with s. 1184(1) of the amending Act) by Corporation Tax Act 2010 (c. 4), s. 1184(1), Sch. 1 para. 396(4) (with Sch. 2)
F3Sch. 2 para. 37(7)(8) inserted (17.7.2013) by Finance Act 2013 (c. 29), Sch. 2 para. 20(1) (with Sch. 2 para. 20(2))