IFM27025 - Real Estate Investment Trust : Breaches of conditions: Company Conditions C and D and the other condition relating to shares: other breaches: CTA2010/S562(5), S562A(4) and S562B(2)

A breach of company conditions C (shares admitted to trading on a recognised stock exchange or at least 70% of ordinary share capital held by one or more institutional investors) and D ( non-close condition), or of the further condition relating to shares (requirement to be 바카라 사이트渓isted바카라 사이트� or traded on a recognised stock exchange), results in automatic termination with effect from the end of the accounting period before the one in which the breach occurred (CTA2010/S562(5), S562A(4) and S562B(2)).

This is subject to the relaxations provided by:

  • CTA2010/S527(6) - relaxation of company condition D for first 3 years 바카라 사이트� see IFM22015,
  • CTA2010/S528(3B) - Condition C treated as met for the period of 12 months beginning with the day on which the company ceased to meet the requirement that at least 70% of its ordinary share capital is owned by institutional investors 바카라 사이트� see IFM22010,
  • CTA2010/S528B - relaxation of requirement to be 바카라 사이트渓isted바카라 사이트� or traded on a recognised stock exchange for first 3 accounting periods聽 - see聽IFM22010, and
  • and the provisions for breaches resulting from takeovers (see IFM27015) or, for condition D, the actions of others - see IFM27020.听

If there is a breach of condition D during the CTA2010/S527(6) 3-year relaxation period, or of the 바카라 사이트榣isted바카라 사이트� or traded condition during the CTA2010/S528B 3-accounting period relaxation period, the group/company transfers the property rental business, or part thereof, to another group/company, and the transferee group/company, taking account of the transferor바카라 사이트檚 breach, continues to breach the relevant condition for a period exceeding 3 years, then a notice may be given that the group/company is to be taken to have ceased as a UK-REIT on the first day of accounting period 1 of the transferee group/company or a later date specified in the notice. (CTA2010/S573A and S573B)