Industrial Development (Encouragement of External Investment) Act, 1958
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FIRST SCHEDULE. Qualified Companies And Qualified Businesses. | ||
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Part I. Qualified Companies. | ||
1. (1) A company shall, for the purposes of Part I of this Schedule (including subparagraph (2) of this paragraph), be at a particular time a qualified holding (A) company if it then complies with both the following conditions— | ||
(a) its issued shares are then, to an extent exceeding one-half (in nominal value) thereof, in the beneficial ownership of persons who are then qualified (1934 Act) persons, and | ||
(b) at least two-thirds (in nominal value) of every class of its issued shares carrying voting rights (whether immediate or to arise in certain future circumstances) are then in the beneficial ownership of persons who are then qualified (1934 Act) persons. | ||
(2) A company shall, for the purposes of Part I of this Schedule, be at a particular time a qualified holding (B) company if it then complies with both the following conditions— | ||
(a) its issued shares are then, to an extent exceeding one half (in nominal value) thereof, in the beneficial ownership of a person who is or two or more persons each of whom is then either a qualified (1934 Act) person or a company which is then a qualified holding (A) company, and | ||
(b) at least two-thirds (in nominal value) of every class of its issued shares carrying voting rights (whether immediate or to arise in certain future circumstances) are then in the beneficial ownership of a person who is or two or more persons each of whom is then either a qualified (1934 Act) person or a company which is then a qualified holding (A) company. | ||
2. Subject to paragraph 3 of this Schedule, a company shall, for the purposes of paragraph (d) of subsection (1) of section 5 of this Act, be at a particular time a qualified company if it then complies with all the following conditions— | ||
(a) its issued shares are then to an extent exceeding one-half (in nominal value) thereof in the beneficial ownership of a person who is or two or more persons each of whom is then either a qualified (1934 Act) person or a company which is then a qualified holding (A) company or a qualified holding (B) company; and | ||
(b) at least two-thirds in nominal value of each class of its issued shares carrying voting rights (whether immediate or to arise in certain future circumstances) are then in the beneficial ownership of a person who is or two or more persons each of whom is then either a qualified (1934 Act) person or a company which is then a qualified holding (A) company or a qualified holding (B) company; and | ||
(c) the majority of its directors (other than a managing director who gives the whole of his time to his duties in that capacity and is not a qualified (1932 Act) person) consist of persons who are then qualified (1932 Act) persons. | ||
3. (1) On and after the appointed day, a company shall not be, at a particular time, a qualified company for the purposes of paragraph (d) of subsection (1) of section 5 of this Act, unless, in addition to complying with all the conditions specified in paragraph 2 of this Schedule, its paid up share capital is then not less than half the following sum, namely, the then value of the fixed assets then used in its business or the original cost of those assets, whichever is the less, after deducting therefrom— | ||
(a) the amount of any grant made to it out of moneys provided by the Oireachtas or by any body established by or under any enactment, | ||
(b) the amount of its reserves in so far as they have been provided out of profits, | ||
(c) any amounts due by it in respect of hire-purchase agreements, within the meaning of the Hire Purchase Act, 1946 (No. 16 of 1946), covering periods of not more than five years, | ||
(d) the amount of any loans then outstanding made to it in respect of which the Minister has given a guarantee, | ||
(e) the amount of any loans then outstanding made to it by Irish citizens or companies which are then exempted from the operation of section 9 of the Act of 1934, as amended by section 5 of this Act, by virtue of paragraph (d), (e) or (f) of subsection (1) of the said section 5, and | ||
(f) the amount of any loans then outstanding made to it by the Industrial Credit Company, Limited, or the payment of which has been guaranteed by that Company. | ||
(2) (a) Where— | ||
(i) at a particular time any shares of a company are held by a company (in this clause referred to as the holding company) which is then a qualified holding (A) company or a qualified holding (B) company, and | ||
(ii) those shares exceed in nominal value the then paid up share capital of the holding company, | ||
then, for the purposes of subparagraph (1) of this paragraph, the excess shall be excluded in computing the then paid up share capital of the first mentioned company. | ||
(b) Where— | ||
(i) at a particular time any shares of a then qualified holding (B) company are held by a then qualified holding (A) company, and | ||
(ii) those shares exceed in nominal value the then paid up share capital of that qualified holding (A) company, | ||
then, for the purposes of clause (a) of this subparagraph, the excess shall be excluded in computing the paid up share capital of that qualified holding (B) company. | ||
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Part II. Qualified Businesses. | ||
4. A business shall, for the purposes of paragraph (e) of subsection (1) of section 5 of this Act, be at a particular time a qualified business if it then complies with both of the following conditions— | ||
(a) it was on the 2nd day of July, 1934, owned by a company the issued shares of which were on the 2nd day of July, 1934, to an extent exceeding one-half (in nominal value) thereof in the beneficial ownership of a person who was or two or more persons each of whom was on the 2nd day of July, 1934, either a qualified (1932 Act) person or a company the issued shares of which were on the 2nd day of July, 1934, to an extent exceeding one-half (in nominal value) thereof in the beneficial ownership of persons who were on the 2nd day of July, 1934, qualified (1932 Act) persons, and | ||
(b) it is then owned by a company the issued shares of which are then to an extent exceeding one-half (in nominal value) in the beneficial ownership of a person who is or two or more persons each of whom is then either a qualified (1932 Act) person or a company the issued shares of which are then to an extent exceeding one-half (in nominal value) thereof in the beneficial ownership of qualified (1932 Act) persons. | ||
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Part III. Provisions supplementary to Parts I and II. | ||
5. The provisions set out in the subsequent paragraphs of this Schedule shall apply for the purposes of Parts I and II of this Schedule. | ||
6. Where an individual who is either a qualified (1932 Act) person or a qualified (1934 Act) person dies and is at the time of his death the beneficial owner of any shares in a company, the following provisions shall have effect— | ||
(a) such shares shall, until the grant of probate of his will or letters of administration of his personal estate, be deemed to continue, in case he was a qualified (1932 Act) person, in the beneficial ownership of a qualified (1932 Act) person or, in case he was a qualified (1934 Act) person, in the beneficial ownership of a qualified (1934 Act) person, | ||
(b) upon the said grant being made, the personal representative for the time being of such individual shall, so long as he is entitled to such shares in his representative capacity, be deemed— | ||
(i) to be the beneficial owner of such shares, and | ||
(ii) in case such individual was a qualified (1932 Act) person and such personal representative is not—to be a qualified (1932 Act) person, | ||
(iii) in case such individual was a qualified (1934 Act) person and such personal representative is not—to be a qualified (1934 Act) person. | ||
7. Where— | ||
(a) an individual who is either a qualified (1932 Act) person or a qualified (1934 Act) person becomes a bankrupt or carries an arrangement with his creditors, and | ||
(b) such individual was at the time of his bankruptcy or arrangement the beneficial owner of any shares in a company, and | ||
(c) his interest in such shares becomes vested in his assignee in bankruptcy or a trustee of the estate of such individual, then, so long as1 such interest remains so vested, | ||
the following provisions shall have effect— | ||
(i) such shares shall be deemed to be in the beneficial ownership of such assignee or trustee, | ||
(ii) in case such individual is a qualified (1932 Act) person and such assignee or trustee is not—such assignee or trustee shall be deemed to be a qualified (1932 Act) person, | ||
(iii) in case such individual is a qualified (1934 Act) person and such assignee or trustee is not—such assignee or trustee shall be deemed to be a qualified (1934 Act) person. | ||
8. (1) Where a person is for the time being entitled to the income arising from any shares in a company held by a trustee, such person shall, so long as he continues to be entitled to such income, be deemed to be the beneficial owner of such shares. | ||
(2) Where two or more persons are each for the time being entitled to a proportionate part of the income arising from shares in a company or from such shares and other property held by a trustee, each of such persons, so long as he continues to be entitled to a proportion of such income shall be deemed to be the beneficial owner of a corresponding proportion of such shares. | ||
9. Where the issued shares of a company are transferred to a bank, being a body corporate, by way of security for an advance, and such bank is registered as the owner of such shares in the register of shareholders of such company, such transfer and registration shall be deemed not to operate to transfer the ownership of such shares to such bank. | ||
10. Whenever the issued shares of a company cease to be held in the manner stated in paragraph 2 or 4 of this Schedule, such shares shall, for the purposes of that paragraph, be deemed to continue to be held in accordance with that paragraph for a period of six months after they cease to be in fact so held. |