Part 5Loan Relationships

Chapter 13European cross-border transfers of business

Transparent entities

429Disapplication of Chapter where transparent entities involved

(1)

This Chapter does not apply in relation to the transfer of business if the transferor is a transparent entity.

(2)

If any transferee is a transparent entity, sections 424 and 425 (reorganisations involving loan relationships) do not apply.

(3)

In this section “transparent entity” means a company which is resident in a member State other than the United Kingdom and does not have an ordinary share capital.

(4)

For the meaning of “resident in a member State”, see section 430.