That certainly doesn't encourage investment. It is analogous to trying to encourage employment by requiring companies to keep a worker for life once employed. It makes a company think twice about hiring. This will do the same for investment.

Nor does it make sense to invest in a business without significant growth prospects. It is a waste of capital and prevents it from being redeployed where it makes sense. This will result in larger and less efficient companies more prone to eventual failure.

As always, the government needs to get out the of way.