Section 257MD | The unquoted status requirement

(1)At the beginning of the shorter applicable period—

(a)the social enterprise must not be a quoted company,

(b)there must be no arrangements in existence for the social enterprise to become a quoted company, and

(c)there must be no arrangements in existence for the social enterprise to become a subsidiary of a company (“the new company”) by virtue of an exchange of shares, or shares and securities, if arrangements have been made with a view to the new company becoming a quoted company.

(2)For the purpose of this section, a company is a “quoted company” if any shares, stocks, debentures or other securities of the company are—

(a)listed on a recognised stock exchange,

(b)listed on a designated exchange in a country outside the United Kingdom, or

(c)dealt in outside the United Kingdom by such means as may be designated.

(3)In subsection (2)(b) and (c) “designated” means designated by an order made by the Commissioners for Her Majesty's Revenue and Customs for the purposes of that provision.

(4)An order made for the purposes of subsection (2)(b) may designate an exchange by name, or by reference to any class or description of exchanges, including a class or description framed by reference to any authority or approval given in a country outside the United Kingdom.

(5)The arrangements referred to in subsection (1)(b), and the second arrangements referred to in subsection (1)(c), do not include arrangements in consequence of which any shares, stocks, debentures or other securities of the social enterprise or the new company (as the case may be) are at any subsequent time—

(a)listed on a stock exchange that is a recognised stock exchange by virtue of an order under section 1005(1)(b), or

(b)listed on an exchange, or dealt in by any means, designated by an order made for the purposes of subsection (2)(b) or (c),

if the order was made after the beginning of the shorter applicable period.