Point in Time
Act No: CAP. 485A
Act Title: CAPITAL MARKETS
[ Date of commencement: 15th December, 1989. ]
[ Date of assent: 13th December, 1989. ]
Arrangement of Sections
PART I – PRELIMINARY
4.
Definition of “interest in securities”
(1)

Where any property held in trust consists of or includes securities in which a person knows, or has reasonable grounds for believing, that he has an interest, he shall be deemed to have an interest in those securities.

(2)

A person shall be deemed to have an interest in a security where a body corporate has an interest in a security and—

(a)

the body corporate is, or its directors are, accustomed or under an obligation, whether formal or informal, to act in accordance with directions, instructions or wishes of that person in relation to that security;

(b)

that person has a controlling interest in the body corporate; or

(c)

that person is, or the associates of that person or that person and his associates are, entitled to exercise or control the exercise of not less than fifteen per cent of the votes attached to the voting shares in the body corporate.

(3)

A person shall be deemed to have an interest in a security in any one or more of the following circumstances—

(a)

where he has entered into a contract to purchase a security;

(b)

where he has a right, otherwise than by reason of having an interest under a trust, to have a security transferred to himself or to his order, whether the right is exercisable presently or in the future and whether on the fulfillment of a condition or not;

(c)

where he has the right to acquire a security, or an interest in a security, under an option, whether on the fulfillment of a condition or not; or

(d)

where he is entitled, otherwise than by reason of his having been appointed a proxy or representative to vote at a meeting of members of a body corporate or of a class of its members, to exercise or control the exercise of a right attached to a security, not being a security of which he is the registered holder.

(4)

A person shall be deemed to have an interest in a security if that security is held jointly with another person.

(5)

For the purpose of determining whether a person has an interest in a security, it is immaterial that the interest cannot be related to a particular security.

(6)

There shall be disregarded—

(a)

an interest in a security if the interest is that of a person who holds the security as bare trustee;

(b)

an interest in a security of a person whose ordinary business includes the lending of money if he holds the interest only by way of security for the purposes of a transaction entered into in the ordinary course of business in connection with the lending of money;