4(1)This paragraph applies if —U.K.
(a)the Secretary of State gives a direction under section 57 above requiring the CAA to release a company from liability in respect of debts,
(b)in connection with the direction the Secretary of State gives a direction or directions under section 58 above, and
(c)securities are issued in accordance with the direction or directions under section 58.
(2)Sub-paragraph (3) applies if the direction under section 58 requires securities to be issued to one person only or the directions under that section (taken together) require securities to be issued to one person only; and sub-paragraph (4) applies in any other case.
(3)For the purposes of the 1992 Act the person to whom the securities are issued is to be treated as acquiring them for a consideration—
(a)provided by him wholly and exclusively for the securities, and
(b)equal to the amount of the liability affected by the release required by the direction under section 57.
(4)For the purposes of the 1992 Act a person to whom any of the securities are issued is to be treated as acquiring them for a consideration—
(a)provided by him wholly and exclusively for the securities, and
(b)equal to such part as is just and reasonable of the amount of the liability affected by the release required by the direction under section 57.
(5)This paragraph applies whether or not the person to whom the securities are issued, or any person to whom any of the securities are issued, is a person transferring anything under the transfer scheme in connection with which the direction under section 57 is given.
(6)Expressions used in this paragraph and in the 1992 Act have the same meanings in this paragraph as in that Act.
Commencement Information
I1Sch. 7 paras. 1-20 wholly in force at 1.2.2001, see s. 275(1) and S.I. 2001/57, art. 3(1), Sch. 2 Pt. I (subject to the transitional provision and saving in Sch. 2 Pt. II)