396. Rules for ascertaining change in ownership of company.

For the purposes of disallowing losses1 on the change of ownership of a company2, there is a change of ownership of a company if any of the following conditions is met3, namely:

  1.  

    (1)     a single person acquires more than half the ordinary share capital4 of the company; or

  2.  

    (2)     two or more persons each acquire a holding of at least 5 per cent of the ordinary share capital of the company, and those holdings together amount to more than half the ordinary share capital of the company; or

  3.  

    (3)     two or more persons each acquire a holding of the