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Textual Amendments
F1Pt. 7 heading substituted (with effect in accordance with Sch. 22 para. 2(2) of the amending Act) by Finance Act 2003 (c. 14), Sch. 22 para. 2(1)
(1)This Chapter applies where a person (“the employee”)—
(a)has acquired convertible shares or an interest in such shares in a company, and
(b)did so as a director or employee of that or another company.
(2)For the purposes of this Chapter shares are “convertible” if—
(a)they confer on the holder an immediate or conditional entitlement to convert them into shares of a different class, or
(b)they are held on terms that authorise or require the grant of such an entitlement to the holder if certain circumstances arise, or do not arise.
(3)The references, in relation to the terms of a person’s entitlement, to circumstances arising include references to—
(a)the expiry of a period specified in or determined under those terms,
(b)the death of that or any other person, and
(c)the exercise by any person of a power conferred on that person by or under those terms.
(4)In this Chapter—
“the employer company” means the company as a director or employee of which the employee acquired the convertible shares or the interest in them, and
“
” means the shares mentioned in subsection (1)(a);and “director” and “employee” have the extended meaning given by section 446(1).