227 Associated persons.U.K.
M1(1)Any question whether a person is an associate of another in relation to a company shall be determined for the purposes of sections 219 to 226 and 228 in accordance with the following provisions of this section.
(2)A husband and wife living together are associates of one another, a person under the age of 18 is an associate of his parents, and his parents are his associates.
(3)A person connected with a company is an associate of the company and of any company controlled by it, and the company and any company controlled by it are his associates.
(4)Where a person connected with one company has control of another company, the second company is an associate of the first.
(5)Where shares in a company are held by trustees (other than bare trustees) then in relation to that company, but subject to subsection (8) below, the trustees are associates of—
(a)any person who directly or indirectly provided property to the trustees or has made a reciprocal arrangement for another to do so,
(b)any person who is, by virtue of subsection (2) above, an associate of a person within paragraph (a) above, and
(c)any person who is or may become beneficially entitled to a significant interest in the shares;
and any such person is an associate of the trustees.
(6)Where shares in a company are comprised in the estate of a deceased person, then in relation to that company the deceased’s personal representatives are associates of any person who is or may become beneficially entitled to a significant interest in the shares, and any such person is an associate of the personal representatives.
(7)Where one person is accustomed to act on the directions of another in relation to the affairs of a company, then in relation to that company the two persons are associates of one another.
(8)Subsection (5) above shall not apply to shares held on trusts which—
(a)relate exclusively to an exempt approved scheme as defined in Chapter I of Part XIV, or
(b)are exclusively for the benefit of the employees, or the employees and directors, of the company referred to in that subsection or of companies in a group to which that company belongs, or their dependants (and are not wholly or mainly for the benefit of directors or their relatives);
and for the purposes of this subsection “group” means a company which has one or more 51 per cent. subsidiaries, together with those subsidiaries.
(9)For the purposes of subsections (5) and (6) above a person’s interest is significant if its value exceeds 5 per cent. of the value of all the property held on the trusts or, as the case may be, comprised in the estate concerned, excluding any property in which he is not and cannot become beneficially entitled to an interest.
Marginal Citations
M1Source—1982 Sch.9 14