Taxes Consolidation Act 1997 section 705C

Conditions regarding shares

Section 705C requires a Real Estate Investment Trust (REIT) to maintain a simple share structure, restricting the types and classes of shares it may issue.

• Ordinary shares are all shares other than preference shares; preference shares carry only a fixed-rate dividend and have rights comparable to fixed-dividend shares quoted on a stock exchange in the State
• Each share issued by a REIT or the principal company of a group REIT must be either an ordinary share or a preference share with no voting rights
• Only one class of ordinary share may be issued by a REIT or by the principal company of a group REIT
• The effect is to ensure a straightforward ownership structure, preventing complex multi-class share arrangements