Section 560 | Meaning of “equity securities” and related expressions

(1)In this Chapter—

“equity securities” means—

(a)ordinary shares in the company, or

(b)rights to subscribe for, or to convert securities into, ordinary shares in the company;

“ordinary shares” means shares other than shares that as respects dividends and capital carry a right to participate only up to a specified amount in a distribution.

(2)References in this Chapter to the allotment of equity securities—^F1

(a)include the grant of a right to subscribe for, or to convert any securities into, ordinary shares in the company, and^F1

(b)do not include the allotment of shares pursuant to such a right.^F1

(3)References in this Chapter to the allotment of equity securities include the sale of ordinary shares in the company that immediately before the sale were held by the company as treasury shares.^F1