# Finance Act 1986, Section 72ZA: Meaning of “exempt capital-raising instrument”


(1) For the purposes of sections 67 and 70, an instrument is an “exempt capital-raising instrument” if the instrument transfers relevant securities in the course of capital-raising arrangements.
(2) In this section, “capital-raising arrangements” means arrangements pursuant to which relevant securities are issued by a company for the purpose of raising new capital.
(3) An instrument is not prevented from being an exempt capital-raising instrument by reason only of a delay in transferring relevant securities where—
(a) a person (“the transferor”) acquires the relevant securities—
(i) before capital-raising arrangements are entered into, or
(ii) in the course of capital-raising arrangements,
(b) the transferor is subject to a restriction that has the effect of preventing the transfer of the relevant securities in the course of the capital-raising arrangements, and
(c) the instrument transfers the relevant securities as soon as reasonably practicable after the time at which the restriction ceases to have effect.

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Source: https://www.legislation.gov.uk/ukpga/1986/41/section/72ZA (the official version)
Page: https://openlegislation.uk/finance-act-1986/section-72ZA
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.