Companies Act, 1990

Interests to be disregarded.

78.—(1) The following interests in shares shall be disregarded for the purposes of sections 67 to 71

(a) where property is held on trust and an interest in shares is comprised in that property, an interest in reversion or remainder or of a bare trustee and any discretionary interest;

(b) an interest of a person subsisting by virtue of—

(i) his holding units in—

(I) a registered unit trust scheme within the meaning of section 3 of the Unit Trusts Act, 1972 ;

(II) a unit trust to which section 31 of the Capital Gains Tax Act, 1975 , as amended by section 34 of the Finance Act, 1977 , relates;

(III) an undertaking for collective investment in transferable securities, within the meaning of the European Communities (Undertakings for Collective Investment in Transferable Securities) Regulations, 1989 ( S.I. No. 78 of 1989 );

or

(ii) a scheme made under section 46 of the Charities Act, 1961 ;

(c) an interest for the life of himself or another of a person under a settlement in the case of which the property comprised in the settlement consists of or includes shares, and the conditions mentioned in subsection (3) are satisfied;

(d) an exempt security interest;

(e) an interest of the President of the High Court subsisting by virtue of section 13 of the Succession Act, 1965 ;

(f) an interest of the Accountant of the High Court in shares held by him in accordance with rules of court;

(g) such interests, or interests of such a class, as may be prescribed for purposes of this paragraph by regulations made by the Minister.

(2) A person shall not by virtue of section 77 (4) (b) be taken to be interested in shares by reason only that he has been appointed a proxy to vote at a specified meeting of a company or of any class of its members and at any adjournment of that meeting, or has been appointed by a body corporate to act as its representative at any meeting of a company or of any class of its members.

(3) The conditions referred to in subsection (1) (c) are, in relation to a settlement—

(a) that it is irrevocable, and

(b) that the settlor (within the meaning of section 96 of the Income Tax Act, 1967 ) has no interest in any income arising under, or property comprised in, the settlement.

(4) An interest in shares is an exempt security interest for purposes of subsection (1) (d) if—

(a) it is held by—

(i) the holder of a licence under section 9 of the Central Bank Act, 1971 , or an insurance company within the meaning of the Insurance Acts, 1909 to 1990,

(ii) a trustee savings bank (within the meaning of the Trustee Savings Banks Acts, 1863 to 1979) or a Post Office Savings Bank within the meaning of the Post Office Savings Bank Acts, 1861 to 1958,

(iii) Agricultural Credit Corporation plc or Industrial Credit Corporation plc,

(iv) a member of a recognised stock exchange carrying on business as a stockbroker, and

(b) it is held by way of security only for the purposes of a transaction entered into by the person or body concerned in the ordinary course of business of such person or body.