PART 1The dormant assets scheme
Securities assets
14Transfer of eligible proceeds or distribution to reclaim fund
(1)
This section applies where—
(a)
a traded public company transfers to an authorised reclaim fund any dormant eligible proceeds or distribution relating to a share in the company registered in the name of an individual, and
(b)
the reclaim fund consents to the transfer.
(2)
On the transfer of the eligible proceeds or distribution—
(a)
a person to whom the proceeds or distribution is payable immediately before the transfer—
(i)
ceases to have any right against the company to payment of the proceeds or distribution, or
(ii)
if the person is not the registered shareholder, has no right against the shareholder to payment of the proceeds or distribution, but
(b)
that person acquires against the reclaim fund whatever right to payment of the proceeds or distribution the person would have had if the transfer had not happened.
(3)
In this section and sections 15 and 16—
“” has the meaning given by section 540 of the Companies Act 2006;
“traded public company” is a public company (within the meaning of section 4(2) of the Companies Act 2006) whose shares are traded on a UK regulated market or a UK multilateral trading facility.
(4)
In subsection (3) “UK multilateral trading facility” and “UK regulated market” have the meanings given by paragraph 1 of article 2 of the Regulation (EU) No 600/2014 of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Regulation (EU) No 648/2012.