Commentary on Sections Overview Overview Section 289: The proportion of eligible shares requirement
869.This section requires a certain proportion of an investment in a relevant company to be in eligible shares. It is based on paragraph 10B of Schedule 28B to ICTA.
870.Subsections (2) and (3) set out rules about the value of shares in or securities of a company. The underlying approach is to value shares and securities at their value when acquired so that the requirement will not cease to be satisfied purely because of later fluctuations in the value of those investments.
871.Subsection (4) ensures that the value of the investment cannot be less than its initial cost price.