Part 5Enterprise investment scheme

Chapter 3General requirements

The requirements

173The shares requirement

1

The relevant shares must meet—

a

the requirements of subsection (2), and

b

unless they are bonus shares, the requirements of subsection (3).

2

Shares meet the requirements of this subsection if they are ordinary shares which do not, at any time during period B, carry—

a

any present or future preferential right to dividends or to a company's assets on its winding up, or

b

any present or future right to be redeemed.

3

Shares meet the requirements of this subsection if they—

a

are subscribed for wholly in cash, and

b

are fully paid up at the time they are issued.

4

Shares are not fully paid up for the purposes of subsection (3)(b) if there is any undertaking to pay cash to any person at a future date in respect of the acquisition of the shares.