221Meaning of “making an investment”U.K.
This section has no associated Explanatory Notes
(1)For the purposes of this Part, a company makes an investment in a body at any time when—
(a)the company makes a loan (whether secured or unsecured) to the body, or
(b)an issue of securities of or shares in the body, for which the company has subscribed, is made to the company.
(2)The following provisions of this section apply for the purposes of subsection (1)(a).
(3)A company does not make a loan to a body if—
(a)the body uses overdraft facilities provided by the company, or
(b)the company subscribes for or otherwise acquires securities of the body.
(4)If the loan agreement authorises the body to draw down amounts of the loan over a period of time, the loan is treated as made at the time when the first amount is drawn down.