This again is, in the words of Deputy de Valera, simply putting a restriction in the Bill to prevent an abuse. It might be arranged that an equity holder's share in a distribution of profits, or of assets on a winding up, would diminish with the efflux of time. For example, shares might lose the right to participate in profits or in assets on a winding up or other shares might gain rights. This might be used to enable one company to have the 75 per cent entitlement at a time when it would be advantageous for group relief purposes. This is prevented by providing that for the purposes of the 75 per cent test, whichever is the lower of the equity holder's present or future rights is to be taken. This is to prevent people adjusting the 75 per cent shareholding to suit themselves at any given time.
SECTION 113.
Question proposed: " That section 113 stand part of the Bill."
In other words, it is to keep the company within the group relief clause as earlier given defining the rules?
Yes.
Question put and agreed to.