835“Related party”U.K.
(1)This section explains when a person (“A”) is a “” in relation to a company (“B”) for the purposes of this Part.
(2)In a case where A is a company, A is a related party in relation to B if—
(a)A has control of, or holds a major interest in, B, or
(b)B has control of, or holds a major interest in, A.
(3)In a case where A is a company, A is a related party in relation to B if A and B are both under the control of the same person (but see subsection (4)).
(4)Subsection (3) does not apply if the person controlling both A and B is—
(a)the Crown,
(b)a Minister of the Crown or a government department,
(c)the Scottish Ministers,
(d)the National Assembly for Wales,
(e)a Minister within the meaning of the Northern Ireland Act 1998 (c. 47) or a Northern Ireland department,
(f)a foreign sovereign power, or
(g)an international organisation.
(5)A is a related party in relation to B if B is a close company and A is, or is an associate of—
(a)a participator in B, or
(b)a participator in a company that has control of, or holds a major interest in, B.
(6)In a case where A is a company, A is a related party in relation to B if B is another company in the same group.
(7)A is treated as being a related party in relation to B if A would be so but for any person (other than an individual) being the subject of—
(a)insolvency arrangements, or
(b)equivalent arrangements under the law of any country or territory, whether made when the person is solvent or insolvent.
(8)In subsection (7) “insolvency arrangements” includes—
(a)arrangements under which a person acts as the liquidator, provisional liquidator, receiver, administrator or administrative receiver of a company or firm, and
(b)voluntary arrangements proposed or approved in relation to a company or firm under Part 1 of the Insolvency Act 1986 (c. 45) or Part 2 of the Insolvency (Northern Ireland) Order 1989 (S.I. 1989/2405 (N.I. 19)).
(9)In subsection (8)—
“administrative receiver” has the meaning given in section 251 of the Insolvency Act 1986 or Article 5(1) of the Insolvency (Northern Ireland) Order 1989,
“administrator” means a person appointed to manage the affairs, business and property of the company or firm under Schedule B1 to that Act or Order,
“receiver” means a person appointed as receiver of some or all of the property of the company or firm under an enactment or under an instrument issued for the purpose of representing security for, or the rights of creditors in respect of, any debt.
(10)For the meaning of “control”, “major interest”, “associate”, “participator”, see sections 836, 837 and 841.