VCM15110 - Investee companies: independence requirement

ICTA/S293 (8); ITA/S185; ITA/S296; FA00/SCH15/PARA17

Each scheme has rules which secure that the company issuing the shares is independent - that is to say, not controlled or owned by another company, or by another company and any person or persons connected with that company. The rules for each scheme are explained as follows:

For the meaning of 'connected' in this context see VCM15120.

In each case the rule is extended by a rule that there must not be any arrangements by virtue of which it could be breached, either currently or at any future date. 'Arrangements' is defined as including any scheme, agreement or understanding, whether or not legally enforceable.