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[F137(1)For the purposes of this Schedule, one body corporate is associated with another if one of them controls the other or a third body corporate controls both of them, and sub-paragraphs (2) to (6) set out the circumstances in which one body corporate (“A”) controls another (“B”).U.K.
(2)Where B is a company, A controls B if A possesses or is entitled to acquire—
(a)one half or more of the issued share capital of B,
(b)such rights as would entitle A to exercise one half or more of the votes exercisable in general meetings of B,
(c)such part of the issued share capital of B as would entitle A to one half or more of the amount distributed if the whole of the income of B were in fact distributed among the shareholders, or
(d)such rights as would, in the event of the winding up of B or in any other circumstances, entitle it to receive one half or more of the assets of B which would then be available for distribution among the shareholders.
(3)Where B is a limited liability partnership, A controls B if A—
(a)holds a majority of the voting rights in B,
(b)is a member of B and has a right to appoint or remove a majority of other members, or
(c)is a member of B and controls alone or pursuant to an agreement with other members, a majority of the voting rights in B.
(4)In sub-paragraph (3)(a) and (c) the references to “voting rights” are to the rights conferred on members in respect of their interest in a limited liability partnership to vote on those matters which are to be decided on by a vote of the members of the limited liability partnership.
(5)In any case, A controls B if A has the power, directly or indirectly, to secure that the affairs of B are conducted in accordance with A's wishes.
(6)In determining whether, by virtue of sub-paragraphs (2) to (5), A controls B, A is to be taken to possess—
(a)any rights and powers possessed by a person as nominee for it, and
(b)any rights and powers possessed by a body corporate which it controls (including rights and powers which such a body corporate would be taken to possess by virtue of this sub-paragraph).]
Textual Amendments
F1Sch. 2A inserted (20.5.2009) by Energy Act 2008 (c. 32), ss. 44(4), 110(2), Sch. 2; S.I. 2009/1270, art. 2
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