Section 257LH | Requirement for no collusion with a non-qualifying investor

There must not at any time in the longer applicable period be any arrangements—^F1

(a)as part of which—^F1

(i)the investor makes the investment, or^F1

(ii)the investor, or an individual who is an associate of the investor, makes any other investment in the social enterprise,^F1

(b)which provide for a person to make an investment in a company other than the social enterprise, where that person is not the individual (“A”) who invests as mentioned in paragraph (a), and^F1

(c)to which there is a party (whether or not A) who is an individual in relation to whom not all of the requirements in sections 257LF and 257LG would be met if—^F1

(i)references in those sections to the investor were read as references to that individual, and^F1

(ii)references in those sections to the social enterprise were read as references to the company mentioned in paragraph (b).^F1