Article 4 Shares deemed paid up in or allotted for cash, and sale of treasury shares for a cash consideration: meaning of cash consideration

(1)

The creation of an obligation on the part of a settlement bank to make a relevant payment in respect of the allotment of a share to a system-member by means of a relevant system is to be regarded as a means of payment falling within section 583(3)(e).

(2)

The creation of an obligation on the part of a settlement bank to make a relevant payment in respect of the payment up of a share by a system-member by means of a relevant system is to be regarded as a means of payment falling within section 583(3)(e).

(3)

The creation of an obligation on the part of a settlement bank to make a relevant payment in respect of the transfer by a company to a system-member, by means of a relevant system, of a share held by the company as a treasury share is to be regarded as a means of payment falling within section 727(2)(e).

(4)

In this article—

(a)

the expressions “Operator”, “relevant system”, “rules”, “settlement bank” and “system-member” have the meanings given in the Uncertificated Securities Regulations 2001^f1; and

(b)

“relevant payment” means a payment in accordance with the rules and practices of an Operator of a relevant system.

Annotations

Footnotes

f1: S.I. 2001/3755; relevant amending instruments are S.I. 2003/1633, 2007/124.