Companies Act 2014 section 74

Supplementary provisions in relation to sections 72 and 73

Section 74 provides supplementary rules supporting the share premium relief available under sections 72 (mergers) and 73 (group reconstructions), covering balance sheet treatment, nominee arrangements, and the meaning of share transfers.

• Where share premiums are excluded from undenominated capital under sections 72 or 73, the same amount may also be disregarded when valuing the shares or other consideration on the company's balance sheet
• References to the acquisition, issue, allotment, or transfer of shares in sections 72 and 73 extend to transactions carried out through nominees of the relevant company or body corporate
• A transfer of shares includes the transfer of a right to be entered on the body corporate's register of members in respect of those shares
• These supplementary provisions ensure that the share premium relief under sections 72 and 73 operates consistently across different transaction structures and accounting treatments