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YC 15: Directors’ knowledge of failure to meet requirements of continuity provision
or “Directors' responsibility when company ownership changes affect rule compliance”
You could also call this:

“Ignoring changes in company value for certain rules”

This law is about how changes in a company’s value are treated when looking at certain rules. You need to know that sometimes, a company has to meet certain requirements to keep its status or benefits. These are called continuity provisions.

If a company doesn’t meet these requirements just because the value of people’s shares in the company has changed, this law says it’s okay in some cases. The change in value must only be because of changes in the value of the company’s assets (things it owns), or changes in the value of its shares that aren’t because of any changes to how the shares work.

When this happens, the law says you should ignore these value changes. It tells you to treat the company as if it still meets the continuity requirements, even though the market values have changed.

Remember, this only applies when the change in who owns how much of the company (market value interest) is solely because of these value changes, not because people have bought or sold shares differently.

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Next up: YC 17: Demutualisation of insurers

or “Rules for when an insurance company changes to a regular company structure”
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Part Y Definitions and related matters
Measurement of company ownership

YC 16Disregarding market value changes

  1. This section applies if—

  2. for a company at a time, the requirements of a continuity provision are not met; and
    1. the requirements would have been met but for a change in the market value interest of 1 or more persons; and
      1. the change is solely attributable to—
        1. a change in the market value of the tangible and intangible assets of the company:
          1. a change in the market value of any 1 or more shares in the company that is not attributable to any change in the terms of those shares:
            1. a combination of those factors.

            2. The requirements of the continuity provision are treated as met at the time.

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