# Trustee Investments Act 1961, Paragraph 3

Extent: E+W+S+N.I.

The securities mentioned in paragraph 6 and 21 of Part II and paragraph 1 or 4 of Part III of this Schedule do not include—
(a) shares or debentures of an incorporated company of which the total issued and paid up share capital is less than one million pounds;
(ab) shares or debentures of an incorporated company of which the total issued and paid up share capital at any time on the business day before the investment is made is less than the equivalent of one million pounds in the currency of a relevant state (at the exchange rate prevailing in the United Kingdom at the close of business on the day before the investment is made);
(b) shares or debentures of an incorporated company which has not in each of the five years immediately preceding the calendar year in which the investment is made paid a dividend on all the shares issued by the company, excluding any shares issued after the dividend was declared and any shares which by their terms of issue did not rank for the dividend for that year.
For the purposes of sub-paragraph (b) of this paragraph a company formed—
(i) to take over the business of another company or other companies, or
(ii) to acquire the securities of, or control of, another company or other companies,
or for either of those purposes and for other purposes shall be deemed to have paid a dividend as mentioned in that sub-paragraph in any year in which such a dividend has been paid by the other company or all the other companies, as the case may be.
For the purposes of sub-paragraph (b) of this paragraph in relation to investment in shares or debentures of a successor company within the meaning of the Electricity (Northern Ireland) Order 1992 the company shall be deemed to have paid a dividend as mentioned in that sub-paragraph—
(iii)in every year preceding the calendar year in which the transfer date within the meaning of Part III of that Order of 1992 falls (“the first investment year”) which is included in the relevant five years; and
(iv)in the first investment year, if that year is included in the relevant five years and that company does not in fact pay such a dividend in that year; and
“the relevant five years”means the five years immediately preceding the year in which the investment in question is made or propoosed to be made.

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Source: https://www.legislation.gov.uk/ukpga/Eliz2/9-10/62/schedule/FIRST/part/IV/paragraph/3 (the official version)
Page: https://openlegislation.uk/trustee-investments-act-1961/schedule-FIRST/part-IV/paragraph-3
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.