(1) Section 593 (valuation of non-cash consideration) does not apply to the allotment of shares by a company ("company A") in connection with an arrangement to which this section applies.
(2) This section applies to an arrangement for the allotment of shares in company A on terms that the whole or part of the consideration for the shares allotted is to be provided by -
(a) the transfer to that company, or
(b) the cancellation,
of all or some of the shares, or of all or some of the shares of a particular class, in another company ("company B").
(3) It is immaterial whether the arrangement provides for the issue to company A of shares, or shares of any particular class, in company B.
(4) This section applies to an arrangement only if under the arrangement it is open to all the holders of the shares in company B (or, where the arrangement applies only to shares of a particular class, to all the holders of shares of that class) to take part in the arrangement.
(5) In determining whether th
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