ÑÇÖÞÉ«ÇéÍø

Certain breaches of the qualifying asset holding company (QAHC) conditions are subject to cure or wind-down periods and so the QAHC will not immediately cease to be a QAHC under the general rules discussed in D7.135. Distinction is drawn between deliberate breaches and unintentional breaches. A deliberate breach is one caused by an action of¹:

1. Ìý

   •ÌýÌýÌýÌý the QAHC

2. Ìý

   •ÌýÌýÌýÌý a director, or any other person involved in the management, of the QAHC

3. Ìý

   •ÌýÌýÌýÌý a director, or any other person involved in the management, of a person referred to in the bullet point immediately above

4. Ìý

   •ÌýÌýÌýÌý a person with relevant interests in the QAHC, or in an enhanced class of the QAHC, of 25% or more

and such person knew that one of the consequences of such action would be the breach and it would have been reasonable for the person to avoid that action. The final provision is to ensure that breaches which are forced by commercial circumstances are not treated as deliberate. An example of