Section 72ZA | Meaning of “exempt capital-raising instrument” ^F1

(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.