Damien English (Meath West, Fine Gael) | Oireachtas source

The purpose of this amendment is to ensure existing law is carried into this Bill. The 2001 Act provided an exemption to section 32 of the 1963 Act. In simple terms, this allows a subsidiary, whether limited or unlimited, to hold shares in its listed parent where that subsidiary is a member of an approved stock exchange. This permits market making in a parent's shares.

This amendment proposal maintains existing law. It replicates section 32 of the 1963 Act as amended by section 111 of the Company Law Enforcement Act. If the subsidiary is a member of an approved stock exchange acting in the ordinary course of its business as a professional dealer in securities, the restrictions and limitations of the acquisition of shares by a subsidiary in its holding company will not apply. A holding company must treat such shares as treasury shares.