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Section 560 Meaning of “equity securities” and related expressions

United Kingdom

(1)

In this Chapter—

  • “equity securities” means—

    1. (a)

      ordinary shares in the company, or

    2. (b)

      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.

F1(2)

References in this Chapter to the allotment of equity securities—

(a)

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

(b)

do not include the allotment of shares pursuant to such a right.

(3)

References in this Chapter to the allotment of equity securities include the sale of ordinary shares in the company that immediately before the sale were held by the company as treasury shares.

Annotations

Textual amendments

F1

S. 560(2)(3) substituted for s. 560(2) (1.10.2009) by The Companies Act 2006 (Allotment of Shares and Right of Pre-emption) (Amendment) Regulations 2009 (S.I. 2009/2561), reg. 2(2)

Notes on Part 17

Modifications

C1

Pts. 1-39 modified (31.12.2020) by Regulation (EC) No. 2157/2001, Art. AAA1(3) (as inserted by The European Public Limited-Liability Company (Amendment etc.) (EU Exit) Regulations 2018 (S.I. 2018/1298), regs. 1, 97 (with regs. 140-145) (as amended by S.I. 2020/523, regs. 1(2), 5(a)-(f)); 2020 c. 1, Sch. 5 para. 1(1))

C2

Pts. 1-39 (except for Pt. 7 and ss. 662-669), 45-47 extended (12.5.2011) by The Companies Act 2006 (Consequential Amendments and Transitional Provisions) Order 2011 (S.I. 2011/1265), art. 5(1), Sch. 1 para. 2

Notes on Chapter 3

Modifications

C1

Pt. 17 Ch. 3 excluded (8.12.2017) by The Risk Transformation Regulations 2017 (S.I. 2017/1212), regs. 1(2), 176(4) (with reg. 189)