CG14571 - Transactions between connected persons: limitation to operation of S18

A company may issue further shares to its controlling shareholder. They are connected persons but Section 18 does not apply, because the company has not made a disposal. The market value rule will apply in such circumstances ONLY IF you can demonstrate that the acquisition of shares was otherwise than by way of bargain at arm's length. Section 17 would then apply directly, without the operation of Section 18.