Section 1023 Supplementary provision for purposes of section 1022

(1)

This section applies for the purposes of section 1022.

(2)

An option is a qualifying option if condition 3 in section 1016 would be met in relation to shares acquired pursuant to the option.

(3)

There is a takeover of a company when another company (“the acquiring company”) acquires control of it.

(4)

The following companies are qualifying companies—

(a)

the acquiring company,

(b)

a company that, when the takeover occurs, is a parent company of the acquiring company,

(c)

a company that, when the takeover occurs, is a member of a consortium that owns the acquiring company,

(d)

a company that, when the takeover occurs, is a member of a consortium that owns a parent company of the acquiring company, and

(e)

a company within subsection (5).

(5)

A company (“company A”) is within this subsection if when the takeover occurs—

(a)

the acquiring company or a parent company of the acquiring company is a member of a consortium that owns another company (“company B”), and

(b)

company A is—

(i)

a member of that consortium or a parent company of a member of that consortium, and

(ii)

a member of the same commercial association of companies as company B.

Notes on Part 12

C1: Pt. 12 applied by 2010 c. 8, s. 425(5) (as inserted (with effect in accordance with Sch. 5 para. 25(1)-(3) of the amending Act) by Finance (No. 2) Act 2017 (c. 32), Sch. 5 para. 1 (with Sch. 5 paras. 27, 32-34))