Commentary on Sections Example 3 Ne = £5,000; Da = 183; De = 183; Smg = 0 Section 538: Share conversions excluded for purposes of section 536
2180.Among the disqualifying events in section 536 is a conversion of the shares, to which the option relates, into a different class. Section 538 prevents a share conversion being a disqualifying event if it meets certain conditions as set out in subsections (2) and (3). This section derives from paragraph 50 of Schedule 14 to FA 2000.