Industrial Development (Enterprise Ireland) Act 1998

F3 [ Power of Agency to purchase shares etc.

7B

7B. (1) Subject to this section, where in the opinion of the Agency, an industrial undertaking satisfies the relevant requirements, the Agency may, subject to such terms and conditions as it may determine

( a ) purchase or take shares or convertible debt instruments, to any extent it considers desirable, in the body corporate owning, controlling or managing, or participating in the ownership, control or management of such an industrial undertaking, or

( b ) form, or take part with other persons in the formation of, such bodies corporate.

( c ) preference may be given to industrial undertakings or body corporates that are located in the border counties of Louth, Cavan, Donegal, Leitrim, Monaghan and Sligo.

(2) The Agency shall not, without the prior approval of the Minister, purchase or take shares or convertible debt instruments under this section if to do so would result in the Agency holding or having the right to hold on conversion of shares or a debt instrument or instruments

( a ) more than half in nominal value of the equity share capital (within the meaning of section 7 (11) of the Companies Act 2014 ) of a body corporate, or

( b ) more than half in nominal value of shares carrying voting rights (other than voting rights which arise only in specified circumstances) in a body corporate.

(3) The Agency shall not, without the prior permission of the Government, expend, in the aggregate, on the purchase or taking of shares or convertible debt instruments in any one body corporate referred to in subsection (1)(a) , the higher of

( a ) 7,500,000, or

( b ) 7,500,000 in excess of the aggregate amount of such expenditure for which the prior permission of the Government has previously been obtained.

(4) Where the Agency has already purchased or taken, or is purchasing or taking, shares or convertible debt instruments in a body corporate (in this subsection referred to as the relevant body corporate ) in accordance with subsection (1) , the Agency may, without the need to satisfy itself as to further compliance with the relevant requirements and subject to such terms and conditions as it may determine

( a ) purchase, take or receive further shares or convertible debt instruments in the relevant body corporate or another body corporate in the exercise of pre-emption or other rights in respect of, or arising from, the transfer or holding of shares or convertible debt instruments or the issue of new shares or convertible debt instruments, in the relevant body corporate,

( b ) purchase, take or receive shares or convertible debt instruments in another body corporate which has common shareholders and directors to the relevant body corporate, where the other body corporate has been or is being established to hold intellectual property rights or other assets held or created by the relevant body corporate,

( c ) in a case where the Agency is proposing to sell its shares or convertible debt instruments in the relevant body corporate to another body corporate, accept shares or convertible debt instruments in that other body corporate in full or part consideration for the shares or convertible debt instruments in sale, or

( d ) convert its convertible shares or convertible debt instruments in the relevant body corporate or in another body corporate.

(5) In this section

convertible debt instrument means a loan note, loan stock or other financial instrument for the provision of loan finance which

( a ) has been or may be offered or issued by a body corporate to the Agency,

( b ) is convertible into shares in the body corporate, and

( c ) is repayable or redeemable on demand by the Agency or otherwise in accordance with the terms of that convertible debt instrument;

convertible shares means shares which are convertible into shares of another class in the same body corporate;

shares includes convertible shares and, where the context so requires, an option or other instrument which confers a right to acquire or subscribe for shares. ]

Annotations:

Amendments:

F3

Inserted (7.01.2020) by Industrial Development (Amendment) Act 2019 (46/2019), s. 3, S.I. No. 62 of 2020.

Editorial Notes:

E3

Previous affecting provision: section inserted by Withdrawal of the United Kingdom from the European Union (Consequential Provisions) Act 2019 (8/2019), s. 7, not commenced; repealed (7.01.2020) by Industrial Development (Amendment) Act 2019 (46/2019), s. 5, S.I. No. 62 of 2020.