Section 174 The purpose of the issue requirement

United Kingdom

F1(1)

The relevant shares (other than any of them which are bonus shares) must be issued in order to raise money for the purpose of a qualifying business activity F2so as to promote business growth and development.

F3(2)

For this purpose “business growth and development” means the growth and development of—

(a)

if the issuing company is a single company, the business of that company, and

(b)

if the issuing company is a parent company, what would be the business of the group if the activities of the group companies taken together were regarded as one business.

Annotations

Textual amendments

F1: S. 174(1): s. 174 renumbered as s. 174(1) (with effect in accordance with Sch. 5 para. 23 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 5 para. 10(2)
F2: Words in s. 174(1) inserted (with effect in accordance with Sch. 5 para. 23 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 5 para. 10(3)
F3: S. 174(2) inserted (with effect in accordance with Sch. 5 para. 23 of the amending Act) by Finance (No. 2) Act 2015 (c. 33), Sch. 5 para. 10(4)