(1) Section 34 of the Principal Act is hereby amended by the substitution of the following subsections for subsections (1) and (2):

"(1) For the purposes of this Act -

(a) consideration paid by, or a disposition made by, a company shall be deemed to be consideration, or a disposition (as the case may be) paid or made, and

(b) consideration, or a gift, or an inheritance taken by a company shall be deemed to be consideration, or a gift or an inheritance (as the case may be) taken,

by the beneficial owners of the shares in the company and the beneficial owners of the entitlements under any liability incurred by the company (otherwise than for the purposes of the business of the company, wholly and exclusively) in the same proportions as the specified amounts relating to their respective beneficial interests in the shares and entitlements bear to each other.

(2) In this section -

'company' means a private company within the meaning of section 16(2);

'market value' means -

(a) in the case of a person's beneficial interest in shares and entitlements, the market value of that interest on the date of the payment, disposition, gift or inheritance, as the case may be, ascertained by reference to the market value on that date of the shares and entitlements in which the interest subsists, and