VCT: VCT qualifying holdings: requests for advance assurances: information needed
It is for the company to decide what information it wishes to put forward with a view to obtaining the assurances it is seeking. It may choose to supply only primary facts or it may prefer to give its own conclusions in broad statements (such as, “the trade will be a qualifying trade”). However we will not give any assurance that the company will satisfy the requirements unless the information supplied includes all the following:
- a copy of the latest available accounts for the company, and for any subsidiary company. If the company has not yet drawn up accounts we would not expect it to do so for this purpose,
- details of all trading or other activities to be carried on by the company and any subsidiary,
- details of the approximate sum the company hopes to raise, and how it (or its subsidiary) intends to use the money,
- an up-to-date copy of the Memorandum and Articles of Association of the company and of any subsidiary, and details of any changes to be made,
- (where an investment by a particular VCT is in prospect) details of any subscription agreement or other side agreement to be entered into by the company and the VCT. We may also ask to see a copy of the VCT’s prospectus.
We would advise companies to ensure that they are aware of the qualifying conditions of the scheme and to provide any further information they think may be necessary to allow the inspector to consider whether all the requirements are likely to be met. For instance, details of minority holdings in other companies, or details of other companies’ minority holdings in the issuing company, may be relevant in establishing whether the ‘control and independence’ requirements will be met.