(1) In this section, and subject to subsection (2), 'holder of excessive rights' means a person, other than a qualifying investor, who -
(a) is beneficially entitled, directly or indirectly, to at least 10 per cent of the distribution referred to in section 705B(1)(b)(vi), or
(b) is beneficially entitled to, or controls directly or indirectly -
(i) at least 10 per cent of the share capital of, or voting rights in, the REIT, or
(ii) in the case of a group REIT, to at least 10 per cent of the share capital of, or voting rights in, the principal company.
(2) Where a shareholder becomes a holder of excessive rights in a company as a result of that company becoming a REIT or the principal company of a group REIT, then the provisions of subsection (3) will not apply for a period of three years commencing from the date specified by that company in accordance with section 705E(4).
(3) Where a REIT or group REIT makes a distribution to a holder of excessive rights and the REIT or group REIT, as
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