Pooled Development Funds Act 1992

Unless the Board otherwise approves, the investment must be such that, immediately after it is made, the total of:

all amounts paid on the shares in the investee company held by the PDF; and

all amounts remaining unpaid on those shares; and

all amounts the PDF has paid to acquire options in the investee company that the PDF has not yet exercised; and

all amounts the PDF has lent to the investee company that remain outstanding;

the shareholders’ funds of the PDF; and

all amounts remaining unpaid on the issued shares in the PDF.

The Board must not give an approval under subsection (1) if the Board is satisfied that the investment is connected with a scheme or proposed scheme to which Part IVA of the Income Tax Assessment Act 1936 applies or would apply, as the case requires.

An expression used in subsection (2) of this section and in Part IVA of the Income Tax Assessment Act 1936 has the same meaning in that subsection as it has in that Part.