Section 132 | Consortium condition 1

(1)Consortium condition 1 is met if subsection (2) or (3) applies.

(2)This subsection applies if—

(a)the surrendering company is a trading company or a holding company,

(b)the surrendering company is owned by a consortium,

(c)the claimant company is a member of the consortium, and

(d)both companies are UK related.

(3)This subsection applies if—

(a)the claimant company is a trading company or a holding company,

(b)the claimant company is owned by a consortium,

(c)the surrendering company is a member of the consortium, and

(d)both companies are UK related.

(4)But consortium condition 1 is not met if a profit on a sale within subsection (5) by the company that is the member of the consortium would be a trading receipt of the member.

(5)A sale is within this subsection if it is a sale of—

(a)the share capital the member owns in the company owned by the consortium, or

(b)if that company is owned by the consortium as a result of section 153(3) (consortiums involving holding companies), the share capital the member owns in the holding company in question.