12. Amendment of Chapter 5 (miscellaneous charging provisions) of Part 5 of Principal Act.
(1) Chapter 5 of Part 5 of the Principal Act is amended by inserting the following after section 128C:
"Tax treatment of directors of companies and employees who acquire restricted shares. |
128D.— (1) In this section— |
‘ director ' and ‘ employee ' have the meanings, respectively, given to them by section 770(1); |
‘ employer ' means the company in which the director or employee holds his or her office or employment; |
‘ market value ' shall be construed in accordance with section 548; |
‘ restricted shares ' shall be construed in accordance with subsection (3); |
‘ shares ' includes stock; |
‘ specified period ' has the same meaning as in subsection (3)(a). |
(2) Subject to subsection (7), this section applies where— |
(a) a director or employee acquires shares (including shares acquired on the exercise of a right to which section 128 applies) in a company as a director or employee of that company or of another company, |
(b) the shares are shares in the company in which the director or employee holds his or her office or employment or in a company which has control (within the meaning of section 432) of that company, and |
(c) at the time of acquisition, the shares are restricted shares. |
(3) For the purposes of this section, shares are restricted shares if— |