New Clause 185

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

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Unconditional exceptions

‘(1) Neither section (Assistance for acquisition of shares in public company) nor section (Assistance by public company for acquisition of shares in its private holding company) prohibits a transaction to which this section applies.

(2) Those transactions are—

(a) a distribution of the company’s assets by way of—

(i) dividend lawfully made, or

(ii) distribution in the course of a company’s winding up;

(b) an allotment of bonus shares;

(c) a reduction of capital under Chapter (Reduction of capital) of Part (A company’s share capital);

(d) a redemption of shares under Chapter (Redeemable shares) or a purchase of shares under Chapter (Purchase of own shares) of this Part;

(e) anything done in pursuance of an order of the court under Part (Arrangements and reconstructions) (order sanctioning compromise or arrangement with members or creditors);

(f) any thing done under an arrangement made in pursuance of section 110 of the Insolvency Act 1986 (c. 45) or Article 96 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)) (liquidator in winding up accepting shares as consideration for sale of company’s property);

(g) anything done under an arrangement made between a company and its creditors that is binding on the creditors by virtue of Part 1 of the Insolvency Act 1986 (c.45) or Part 2 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)).’.—[Margaret Hodge.]

Brought up, and added to the Bill.