7(1)For the purposes of paragraphs 5 and 6 a person has a material interest in a company if he (whether alone or together with any person connected with him) directly or indirectly possesses or is entitled to acquire more than 30% of—U.K.
(a)the ordinary share capital of the company or any subsidiary, or
(b)the voting power in the company or any subsidiary.
(2)For the purposes of sub-paragraph (1) “”, in relation to a company, means—
(a)all of the issued share capital (by whatever name called) of the company, other than capital comprising relevant preference shares, and
(b)all of the loan capital of the company that comprises debt which carries (directly or indirectly) any right to conversion into, or to the acquisition of, shares within paragraph (a) (or that would be within that paragraph if issued).
(3)For the purposes of sub-paragraph (2)(b) the loan capital of a company shall be treated as including any debt incurred by the company—
(a)for any money borrowed or capital assets acquired by the company,
(b)for any right to receive income created in favour of the company, or
(c)for consideration the value of which to the company was (at the time when the debt was incurred) substantially less than the amount of the debt (including any premium on it).
This is subject to sub-paragraph (4).
(4)For the purposes of sub-paragraph (3) a debt which—
(a)is incurred by a company or any subsidiary by overdrawing an account with a person carrying on the business of banking, and
(b)arises in the ordinary course of that business,
shall not be treated as loan capital of the company.
(5)For the purposes of sub-paragraph (1)—
(a)a person is treated as entitled to acquire anything which he is entitled to acquire at a future date or will at a future date be entitled to acquire, and
(b)there are attributed to a person any rights or powers of any other person who is an associate of his.
(6)For the purposes of this paragraph a company is a subsidiary of another company if it is a 51% subsidiary of that company.