Section 412 | Cash equivalent of share capital

(1)The cash equivalent of share capital issued as mentioned in section 410(1)(a) is the amount of the cash dividend alternative (see section 414A(2)).

(2)But if the difference between the cash dividend alternative and the share capital's market value equals or exceeds 15% of that market value—

(a)subsection (1) does not apply, and

(b)the cash equivalent of the share capital is its market value.

(3)The cash equivalent of share capital issued as mentioned in section 410(1)(b) is its market value.

(4)For the purposes of this section, market value is determined—

(a)in the case of listed share capital, on the date of first dealing, and

(b)in the case of other share capital, on the earliest date on which the company is required to issue it.

(5)In this section—

“listed” means listed in the Stock Exchange Daily Official List, and

“market value” has the same meaning as in sections 272(1) and (3) and 273(3) of TCGA 1992.