Section 169VR | New shares issued on scheme of reconstruction ^F1

(1)This section applies where—

(a)section 136 applies in relation to an arrangement between a company (“company A”) and the persons holding shares, or any class of shares, in company A, under which another company (“company B”) issues shares to those persons, and

(b)under section 136(2)(a) those persons are treated as exchanging shares in company A for the shares held by them in consequence of the arrangement.

(2)For the purposes of sections 169VN to 169VP—

(a)companies A and B are to be treated as if they were the same company, and

(b)the exchange of shares is to be treated as if it were a reorganisation of that company's share capital.

(3)In the following provisions of this Chapter, any reference to an exchange of shares includes anything that section 136(2)(a) treats as an exchange of shares.