(1) The Principal Act is hereby amended -

(a) in section 816 by the substitution for subsections (1) to (3) of the following subsections -

"(1) In this section -

'company' means any body corporate;

'quoted company' means a company whose shares, or any class of whose shares -

(a) are listed in the official list of the Irish Stock Exchange or on any other stock exchange, or

(b) are quoted on the market known as the Developing Companies Market, or the market known as the Exploration Securities Market, of the Irish Stock Exchange or on any similar or corresponding market of any other stock exchange;

'share' means share in the share capital of a company and includes stock and any other interest in the company.

(2) Where any person as a consequence of the exercise (whether before, on or after the declaration of a distribution of profits by a company) of an option to receive in respect of shares in the company either a sum in cash or additional share capital of the company, receives such additional share capital, then, an amount equal to the amount which that person would have received if that person had received the distribution in cash instead of such share capital shall for the purposes of the Tax Acts -