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.
Commentary on Sections Example 3 Ne = £5,000; Da = 183; De = 183; Smg = 0 Section 538: Share conversions excluded for purposes of section 536