SCHEDULES

SCHEDULE 5 Meaning of “connected person” for purposes of section 36(2)

Section 36(2).

1

In section 36(2) of this Act “connected person”, in relation to a charity, means—

a

a charity trustee or trustee for the charity;

b

a person who is the donor of any land to the charity (whether the gift was made on or after the establishment of the charity);

c

a child, parent, grandchild, grandparent, brother or sister of any such trustee or donor;

d

an officer, agent or employee of the charity;

e

the spouse of any person falling within any of sub-paragraphs (a) to (d) above;

f

an institution which is controlled—

i

by any person falling within any of sub-paragraphs (a) to (e) above, or

ii

by two or more such persons taken together; or

g

a body corporate in which—

i

any connected person falling within any of sub-paragraphs (a) to (f) above has a substantial interest, or

ii

two or more such persons, taken together, have a substantial interest.

2

1

In paragraph 1(c) above “child” includes a stepchild and an illegitimate child.

2

For the purposes of paragraph 1(e) above a person living with another as that person’s husband or wife shall be treated as that person’s spouse.

3

For the purposes of paragraph 1(f) above a person controls an institution if he is able to secure that the affairs of the institution are conducted in accordance with his wishes.

4

1

For the purposes of paragraph 1(g) above any such connected person as is there mentioned has a substantial interest in a body corporate if the person or institution in question—

a

is interested in shares comprised in the equity share capital of that body of a nominal value of more than one-fifth of that share capital, or

b

is entitled to exercise, or control the exercise of, more than one-fifth of the voting power at any general meeting of that body.

2

The rules set out in Part I of Schedule 13 to the M1Companies Act 1985 (rules for interpretation of certain provisions of that Act) shall apply for the purposes of sub-paragraph (1) above as they apply for the purposes of section 346(4) of that Act (“connected persons” etc).

3

In this paragraph “equity share capital” and “share” have the same meaning as in that Act.