LR 16.4 Transactions

LR 10 (significant transactions) applies to venture capital trusts except for transactions which fall within the stated investment policies of the venture capital trust.

LR 11 (Related party transactions) applies to venture capital trusts with the following modifications.

In addition to the definition in LR 11.1.4 R a related party includes any investment manager of the venture capital trust.

In addition to the definition in LR 11.1.5 R a related party transaction includes:

1. (1)

   any arrangement by which a venture capital trust takes an interest in a company in which its investment manager has invested or intends to invest on its own account, unless the investment is made either at the same time and on the same terms or in accordance with a pre-existing agreement between the venture capital trust and the investment manager; and

2. (2)

   a venture capital trust that enters into a transaction with another fund managed by the same investment manager.

Where a venture capital trust intends to invest in a company in which another fund managed by the same investment manager has invested or intends to invest, the investment must be approved by the directors of the venture capital trust who are independent of the investment manager unless the investment is made either at the same time and on the same terms or in accordance with a pre-existing agreement between the venture capital trust and the investment manager.

A venture capital trust which is also an investment trust and which either has or is seeking a listing, must comply with the requirements set out in this chapter and with the following provisions:

1. (1)

   the following requirements for listing:

   1. (a)

      LR 15.2.2 R (2), (3) and (4);

   2. (b)

      LR 15.2.11 R (1); and

   3. (c)

      the requirements laid down for investment trusts in section 842 of the Income and Corporation Taxes Act 1988; and

2. (2)

   the continuing obligations set out in:

   1. (a)

      LR 15.4.14 R;

   2. (b)

      LR 15.4.12 R (3); and

   3. (c)

      LR 15.4.21 R (1), (2), (4) and (5).