Section 446 | Joint ventures: supplementary ^F1

(1)If—^F1

(a)the joint venture company makes an election under section 444 in relation to an accounting period,^F1

(b)that company, or any member of the worldwide group of which it is a member, is the creditor for the purposes of section 438 in any case, and^F1

(c)the company mentioned in that section in that case is a not a member of that group at any time in the accounting period,^F1

section 438 has effect in that case as if subsection (3)(b) were of no effect in relation to that time.

(2)Section 434(1) to (5) apply to an election under section 444 as they apply to an election under section 433.^F1

(3)For the purposes of section 444 the investors are not to be regarded as having the same rights in relation to the shares in or assets of the joint venture company, or in relation to the money debt or debts in question, at any time if—^F1

(a)provision is in force at that time in respect of any of the relevant matters that differs in relation to different persons or has, or is capable of having, a different effect in relation to different persons (whether at that or any subsequent time),^F1

(b)arrangements are in place at that time the effect of which is that, at that or any subsequent time, the rights of some persons in relation to any of the relevant matters differ, or will or may differ, from the rights of others in relation to the matters in question, or^F1

(c)any other circumstances exist at that time as a result of which the rights of some persons in relation to any of the relevant matters cannot reasonably be regarded as being, in substance, the same rights as others in relation to the matters in question at that or any subsequent time.^F1

(4)In this section—^F1

(a)“the relevant matters” means the shares in or assets of the joint venture company or the money debt or debts in question,^F1

(b)“rights” includes powers,^F1

(c)“different persons” includes persons of a different class or description, and^F1

(d)“arrangements” include any agreement, understanding, scheme, transaction or series of transactions (whether or not legally enforceable).^F1