Section 138 | Procedure for clearance in advance.

(1)Section 137 does not apply in any case where, before the issue of shares or debentures mentioned in section 135(1) or 136(1) is made, the Board have, on the application of either company mentioned in section 135(1) or 136(1), notified the company that the Board are satisfied that the exchange or scheme of reconstruction will be effected without arrangements in respect of which section 137 applies.^F1F2F3F4F5

(2)Any application under subsection (1) above shall be in writing and shall contain particulars of the operations that are to be effected and the Board may, within 30 days of the receipt of the application or of any further particulars previously required under this subsection, by notice require the applicant to furnish further particulars for the purpose of enabling the Board to make their decision; and if any such notice is not complied with within 30 days or such longer period as the Board may allow, the Board need not proceed further on the application.

(3)The Board shall notify their decision to the applicant within 30 days of receiving the application or, if they give a notice under subsection (2) above, within 30 days of the notice being complied with.

(4)If the Board notify the applicant that they are not satisfied as mentioned in subsection (1) above or do not notify their decision to the applicant within the time required by subsection (3) above, the applicant may within 30 days of the notification or of that time require the Board to transmit the application, together with any notice given and further particulars furnished under subsection (2) above, to the tribunal; and in that event any notification by the tribunal shall have effect for the purposes of subsection (1) above as if it were a notification by the Board.^F6

(5)If any particulars furnished under this section do not fully and accurately disclose all facts and considerations material for the decision of the Board or the tribunal, any resulting notification that the Board or the tribunal are satisfied as mentioned in subsection (1) above shall be void.^F7

(6)In this section, references to shares or debentures include references to any interests or options to which this Chapter applies by virtue of section 135(5), 136(5) or 147.^F8