New Clause 65

Company Law Reform Bill [Lords] – in a Public Bill Committee at 1:45 pm on 20th July 2006.

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Meaning of “equity securities” and related expressions

‘(1) In this Chapter—

“equity securities” means—

(c) ordinary shares in the company, or

(d) rights to subscribe for, or to convert securities into, ordinary shares in the company;

“ordinary shares” means shares other than shares that as respects dividends and capital carry a right to participate only up to a specified amount in a distribution.

(2) References in this Chapter to the allotment of equity securities include—

(a) the grant of a right to subscribe for, or to convert any securities into, ordinary shares in the company, and

(b) the sale of ordinary shares in the company that immediately before the sale are held by the company as treasury shares.’.—[Margaret Hodge.]

Brought up, and added to the Bill.