Section 171 | Shares or securities with temporary rights

(1)Section 172 applies if, at the relevant time, one or more of the participating equity holders holds, as such, shares or securities—

(a)which have rights within subsection (2), or

(b)in relation to which arrangements within subsection (3) are in place.

(2)The rights within this subsection are distribution rights of such a kind that if—

(a)the profit distribution were to be made, or

(b)the notional winding up were to occur,

at a time after the relevant accounting period, the equity holder's entitlement at that time would be different from the equity holder's entitlement at the relevant time.

(3)The arrangements within this subsection are arrangements of such a kind that if—

(a)effect were to be given to the arrangements, and

(b)the profit distribution were to be made, or the notional winding up were to occur, at a time after the relevant accounting period,

then, as a result of effect being given to the arrangements, the equity holder's entitlement at that time would be different from the equity holder's entitlement at the relevant time.

(4)The references in subsections (2) and (3) to the equity holder's entitlement at a time are references to the proportion to which the equity holder would be beneficially entitled (as the case may be)—

(a)of profits on the profit distribution if it were made at that time, or

(b)of assets on the notional winding up if it occurred at that time.