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Regulation 16 Limitation on acquisition of influential stake

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

(1)

Subject to the provisions of paragraph (2), the property of an authorised securities scheme shall not include—

(a)

shares in a body corporate which carry more than 10% of the rights to vote in all circumstances at general meetings of the body corporate; or

(b)

more than 10% of—

(i)

any other shares in a body corporate other than an open-ended investment company; or

(ii)

any investment, other than a Government and other public security, which falls within paragraph 2 of Schedule 1 to the Act and is issed by the same issuer;

(iii)

the units in any collective investment scheme.

(2)

The provisions of sub-paragraphs (a) and (b)(ii) and (iii) of paragraph (1) shall not have effect in any case in which it was not possible, at the time the transferable securities were acquired, to ascertain whether the acquisition would contravene those provisions.