(1) The Principal Act is hereby amended -

(a) in Chapter 1 of Part 30 -

(i) by the insertion in section 770, of the following definitions, namely -

(I) before the definition of "director" of:

"'approved retirement fund' has the meaning assigned to it by section 784A;

'approved minimum retirement fund' has the meaning assigned to it by section 784C;",

and

(II) after the definition of "pension" of:

"'proprietary director' means a director who, either alone or together with his or her spouse and minor children is or was, at any time within three years of the date of -

(a) the specified normal retirement date,

(b) an earlier retirement date, where applicable, or

(c) leaving service,

the beneficial owner of shares which, when added to any shares held by the trustees of any settlement to which the director or his or her spouse had transferred assets, carry more than 20 per cent of the voting rights in the company providing the benefits or in a company which controls that company;",

and

(ii) in section 772 -