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The share reorganisation provisions (D6.101–D6.103) apply where certain arrangements between a company (company A) and its share or debenture-holders (or any class of them) are entered into for the purposes of, or in connection with, a scheme of reconstruction. Broadly, under the arrangement, another company (company B) must issue shares or debentures to those holders in respect of, or in proportion to (or as nearly as may be in proportion to), their original holdings, which latter are then retained, cancelled or otherwise extinguished.

For a scheme of reconstruction to fall within the share reorganisation rules, it must represent¹:

1. Ìý

   (a)ÌýÌýÌýÌý a 'scheme of reconstruction' (as defined below) that involves an arrangement between a company ('company A'), and:

2. 1. Ìý

      (1)ÌýÌýÌýÌý persons holding shares or debentures in the company, or

   2. Ìý

      (2)ÌýÌýÌýÌý where there are different classes of shares or debentures, the persons holding any class of those shares or debentures, and

3. Ìý

   (b)ÌýÌýÌýÌý under the arrangement:

4. 1. Ìý

      (1)ÌýÌýÌýÌý another company ('company B') issues shares or debentures to the persons concerned, in proportion