CTM36850 - Particular topics: transactions in securities: examples of common circumstances where clearance will be given: examples

Example 1

Mrs A and Mrs B jointly own all the share capital in companies C Ltd and D Ltd which operate similar trades. They decide to form a group for specified commercial reasons. They form Newholdco Ltd which issues ordinary shares to Mrs A and Mrs B in exchange for their shares in C Ltd and D Ltd.

Example 2

Mr R owns all the issued share capital in S Ltd. T Ltd, an unconnected company, offers consideration comprising £1m cash plus shares in T Ltd in exchange for his shareholding in S Ltd. The shares offered in T Ltd will represent 5 per cent of its issued share capital. It is likely that the exclusion described at CTM36830 would apply in this case.