Companies Act 2014 section 1386

Definition of "investment company" and construction of references to nominal value of shares, etc.

Section 1386 defines what constitutes an "investment company" under Part 24 of the Act and explains how references to nominal share value should be interpreted for such companies.

• An investment company must be a public limited company whose sole stated object is the collective investment of its funds in property, aiming to spread investment risk and share the benefits of fund management with its members.
• The company's memorandum or articles must provide that the paid-up share capital always equals the net asset value (assets minus liabilities), and that shares will be repurchased from shareholders on request out of the company's assets.
• The Central Bank may approve a company as an investment company even if its memorandum or articles do not provide for the share repurchase requirement, subject to any conditions it considers appropriate.
• Any reference in the Act to the nominal value of shares in an investment company is to be read as the value of the consideration for which those shares were actually issued or allotted.