Section 1083 | Conditions for distributions within section 1077(1)

(1)Condition G is that if a trade is transferred, the distributing company must either—

(a)not retain any interest in that trade, or

(b)retain only a minor interest in it.

(2)Condition H is that if shares in a subsidiary are transferred those shares—

(a)must constitute the whole or substantially the whole of the distributing company's holding of the ordinary share capital of the subsidiary, and

(b)must confer the whole or substantially the whole of the distributing company's voting rights in the subsidiary.

(3)Condition I is that the only or main activity of the transferee company, or each transferee company, after the distribution must be—

(a)the carrying on of the trade, or

(b)the holding of the shares transferred to it.

(4)Condition J is that the shares issued by the transferee company or each transferee company—

(a)must not be redeemable,

(b)must constitute the whole or substantially the whole of its issued ordinary share capital, and

(c)must confer the whole or substantially the whole of the voting rights in that company.

(5)Condition K is that the distributing company must after the distribution be either a trading company or the holding company of a trading group.