Commentary on Sections Overview Section 238: Shares subject to conversion
476.This section is the third in a group of seven sections defining types of “deduction scheme”. It is based on paragraphs 4 and 6 of Schedule 3 to F(No 2)A 2005.
477.Paragraph 6(1)(a) and (b) of Schedule 3 to F(No 2)A 2005 define a scheme, in two alternative ways, by reference to “shares subject to conversion”. This two-part definition is rewritten in subsection (1).
478.Paragraph 6(2) of Schedule 3 to F(No 2)A 2005 defines “shares subject to conversion”, using the expression “the relevant time”. This definition is rewritten in subsections (2) to (4).
479.Paragraph 6(3) of Schedule 3 to F(No 2)A 2005 defines “the relevant time” for the purposes of paragraph 6(2) of that Schedule.
480.The definition of “the relevant time” in paragraph 6(3)(a) of Schedule 3 to F(No 2)A 2005 only applies to cases within paragraph 6(1)(a) of that Schedule, and the definition of “the relevant time” in paragraph 6(3)(b) of that Schedule only applies to cases within paragraph 6(1)(b) of that Schedule. But the source legislation does not make this distinction immediately obvious. Accordingly, subsections (5) and (6) rewrite paragraph 6(3)(a) and (b) as two separate propositions applying, respectively, for the purposes of the two alternative cases in subsection (1).