There are six sections that relate to DACs and share capital. The main things to note are:
1. An existing guarantee company that has a share capital will continue in existence and be deemed to be a DAC limited by shares from the commencement of the Act (Section 979).
3. Section 982 deals with when rights attaching to special classes of shares in a DAC can be varied.
4. The provisions set out in Section 114 of the Act, which relate to the acquisition and holding by a subsidiary of shares in its holding company, also apply to DACs which are limited by guarantee (Section 983).
The Act sets out five corporate governance provisions for DACs:
1. A DAC must have at least two directors.
2. A person should not be a director of more than 25 DACs (but see Section 142 for qualifications).
3. Only a person whose name is on the register of members will be deemed to be a member of a DAC.
4. DACs must hold AGMs. The provisions in the Act – see Section 175(3) and (4) – do not apply to DACs.