Paragraph 8 Securities other than shares to which special rights are attachedF1

England, Wales and Scotland

(1)

Where any security of a transferor company to which special rights are attached is held by a person other than as a member or creditor of the company, the court shall not sanction a compromise or arrangement under section 425(2) unless under the scheme that person is to receive rights in a transferee company of equivalent value.

(2)

Sub-paragraph (1) above shall not apply in the case of any such security where—

(a)

the holder has agreed otherwise; or

(b)

the holder is, or under the scheme is to be, entitled to have the security purchased by a transferee company involved in the scheme on terms which the court considers reasonable.

Annotations

Textual amendments

F1: Sch. 15A (old) inserted by S.I. 1987/1991, reg. 2(c), Sch. Pt. II

Notes on Schedule 15B

Textual amendments

F1: Sch. 15B repealed (6.4.2008) by Companies Act 2006 (c. 46), ss. 1295, 1300, Sch. 16; S.I. 2007/3495, art. 8(a), Sch. 2 Pt. 1 (with arts. 7, 12)
F2: Sch. 15A renumbered by Companies Act 1989 (c. 40, SIF 27), ss. 114(2), 213(2)