Textual Amendments
F1Word in Sch. 2 title omitted (6.4.2014) by virtue of Finance Act 2014 (c. 26), Sch. 8 paras. 14, 89 (with Sch. 8 paras. 90-96)
62(1)A SIP may provide that, where the company so directs, the trustees must apply [F2some or all of the] cash dividends in respect of plan shares held on behalf of—U.K.
(a)all participants, or
(b)all participants who elect to reinvest their dividends,
in acquiring further shares on their behalf.
[F3(1A)The company's direction must set out—
(a)the amount of the cash dividends to be applied as mentioned in sub-paragraph (1), or
(b)how that amount is to be determined.]
(2)Sub-paragraph (1) is subject to paragraph 63 (requirements to be met as regards cash dividends).
(3)In the SIP code—
(a)the application of cash dividends as mentioned in sub-paragraph (1) is referred to as “reinvestment”; and
(b)the further plan shares acquired are referred to as “”.
(4)The company may [F4modify or] revoke a direction requiring the reinvestment of cash dividends.
(5)References in the SIP code to the trustees acquiring dividend shares on behalf of a participant include their appropriating to a participant shares already held by them.
Textual Amendments
F2Words in Sch. 2 para. 62(1) substituted (with effect in accordance with Sch. 2 para. 86 of the amending Act) by Finance Act 2013 (c. 29), Sch. 2 para. 83(2)
F3Sch. 2 para. 62(1A) inserted (with effect in accordance with Sch. 2 para. 86 of the amending Act) by Finance Act 2013 (c. 29), Sch. 2 para. 83(3)
F4Words in Sch. 2 para. 62(4) inserted (with effect in accordance with Sch. 2 para. 86 of the amending Act) by Finance Act 2013 (c. 29), Sch. 2 para. 83(4)