53(1)The plan may provide that where the company so directs—
(a)all cash dividends in respect of plan shares held on behalf of participants must be applied in acquiring further shares on their behalf, or
(b)all cash dividends in respect of plan shares held on behalf of participants who elect to reinvest their dividends must be applied in acquiring further shares on their behalf.
This is referred to in this Part of this Schedule as “reinvestment" and the further plan shares acquired are referred to in this Schedule as “dividend shares".
(2)The company may revoke a direction.
(3)Where cash dividends in respect of plan shares held on behalf of a participant are not required to be reinvested under the plan, the plan must require the dividends to be paid over to the participant as soon as practicable.
(4)This paragraph is subject to paragraph 54 (limit on amount reinvested).