(1) A trustee of a designated investment fund or a manager acting on his behalf shall not invest in shares of a private company and a private company shall not accept in payment for such shares moneys from the fund unless such trustee or manager on the one hand and the company on the other hand have previously entered into an agreement described in subsection (2) of this section and complying with the requirements of subsection (3) of this section.

(2) The agreement referred to in subsection (1) of this section is a written agreement whereby the private company which is a party to the agreement agrees as follows:

(a) that when -

(i) shares of the company have been issued, and

(ii) the company is satisfied that a person is a participant in the relevant designated investment fund and that that person is, under the terms and conditions subject to which subscriptions to the fund were accepted, entitled to require the trustee of the fund to have any such shares transferred into the name of the person,

the company will, on an application's being made to it in that behalf either by the trustee of such fund or by, or on behalf of, such person or his personal representative, register such shares in the name of such person, or, where appropriate, his personal representative,