Regulation 10 Rights issues—relaxation of provisions of regulations 4 and 7

(1)

This regulation prescribes the circumstances in which–

(a)

notwithstanding regulations 4(1)(a) and 7(2)(b) an individual may subscribe to more than one plan in any year, and

(b)

notwithstanding regulation 4(1)(b) or (2) an individual’s cash subscription to a plan in any year may exceed the subscription limit.

(2)

The prescribed circumstances are circumstances in which–

(a)

on the occasion of a new issue of shares a plan manager is entitled, by virtue of a plan investor’s beneficial ownership of shares which are plan investments (in this regulation referred to as“original shares”), to subscribe for shares (in this regulation referred to as“new shares”) (being qualifying investments) which are offered to shareholders in proportion to (or as nearly as may be in proportion to) their shareholdings; and

(b)

the conditions contained in paragraph (3) are fulfilled.

(3)

The conditions to which paragraph (2) refers are–

(a)

that the plan investor–

(i)

was the beneficial owner of the original shares at the end of the day immediately before that on which the right to subscribe for the new shares was announced; and

(ii)

subscribes cash not exceeding the total sum payable to acquire the new shares (in this regulation referred to as“the rights subscription”); and

(b)

that the rights subscription shall–

(i)

be expended only on a subscription for new shares to which paragraph (2) refers, and

(ii)

to the extent that it is not so expended, be transferred to the plan investor together with interest (if any) thereon within 14 days after the date by which the rights subscription is payable by the plan manager under the terms of the offer to subscribe for the new shares.