Modifications etc. (not altering text)
C1Pt. XVII Ch. IV (ss. 747-756) modified (27.7.1993) by 1993 c. 34, s. 119(3)
C2Pt. 17 Ch. 4 modified (10.6.1999) by The Non-resident Companies (General Insurance Business) Regulations 1999 (S.I. 1999/1408), regs. 3-6
(1)For the purposes of this Chapter, the following persons have an interest in a company—
(a)any person who possesses, or is entitled to acquire, share capital or voting rights in the company;
(b)any person who possesses, or is entitled to acquire, a right to receive or participate in distributions of the company;
(c)any person who is entitled to secure that income or assets (whether present or future) of the company will be applied directly or indirectly for his benefit; and
(d)any other person who, either alone or together with other persons, has control of the company.
(2)Rights which a person has as a loan creditor of a company do not constitute an interest in the company for the purposes of this Chapter.
(3)For the purposes of subsection (1)(b) above, the definition of “distribution" in Part VI shall be construed without any limitation to companies resident in the United Kingdom.
(4)References in subsection (1) above to being entitled to do anything apply where a person—
(a)is presently entitled to do it at a future date, or
(b)will at a future date be entitled to do it;
but a person whose entitlement to secure that any income or assets of the company will be applied as mentioned in paragraph (c) of that subsection is contingent upon a default of the company or any other person under any agreement shall not be treated as falling within that paragraph unless the default has occurred.
(5)Where a company has an interest in another company and a third person has, or two or more persons together have, an interest in the first company (as in a case where one company has a shareholding in a controlled foreign company and the first company is controlled by a third company or by two or more persons together) subsections (6) and (7) below apply.
(6)Where this subsection applies, the person who has, or each of the persons who together have, the interest in the first company shall be regarded for the purposes of this Chapter as thereby having an interest in the second company.
(7)In any case where this subsection applies, in construing references in this Chapter to one person having the same interest as another, the person or, as the case may be, each of the persons who together have, the interest in the first company shall be treated as having, to the extent of that person’s interest in that company, the same interest as the first company has in the second company.
(8)Where two or more persons jointly have an interest in a company otherwise than in a fiduciary or representative capacity, they shall be treated for the purposes of this Chapter as having the interest in equal shares.]
Textual Amendments
F1Ss. 749-749B substituted for s. 749 (with effect in accordance with Sch.17 para. 37 of the amending Act) by Finance Act 1998 (c. 36), Sch. 17 para. 4; S.I. 1998/3173, art. 2