Section 228 — Corporation Tax Act 2010: Conditions to be met in relation to shares

Conditions to be met in relation to shares 228 1 Condition A of this section is that the shares must be—

a subscribed for wholly in cash, and b fully paid up on the investment date.

2 Condition B is that the shares must not carry—

a any present or future right to be redeemed during the 5 year period, or b any present or future right to be converted into or exchanged for a loan which is, or securities, shares or other rights which are, redeemable within that period.

3 For the purposes of subsection (1)(b) shares are not fully paid up if there is any undertaking to pay cash to the CDFI at a future date in connection with the acquisition of the shares.