4(1)After section 755C insert—U.K.
(1)For the purposes of this Chapter “control", in relation to a company, means the power of a person to secure—
(a)by means of the holding of shares or the possession of voting power in or in relation to the company or any other company, or
(b)by virtue of any powers conferred by the articles of association or other document regulating the company or any other company,
that the affairs of the company are conducted in accordance with his wishes.
(2)Where two or more persons, taken together, have the power mentioned in subsection (1) above, they shall be taken for the purposes of this Chapter to control the company.
(3)The 40 per cent test in this subsection is satisfied in the case of one of two persons who, taken together, control a company if that one of them has interests, rights and powers representing at least 40 per cent of the holdings, rights and powers in respect of which the pair of them fall to be taken as controlling the company.
(4)The 40 per cent test in this subsection is satisfied in the case of one of two persons who, taken together, control a company if that one of them has interests, rights and powers representing—
(a)at least 40 per cent, but
(b)not more than 55 per cent,
of the holdings, rights and powers in respect of which the pair of them fall to be taken as controlling the company.
(5)For the purposes of this Chapter any question—
(a)whether a company is controlled by a person, or by two or more persons taken together, or
(b)whether, in the case of any company, the applicable 40 per cent test is satisfied in the case of each of two persons who, taken together, control the company,
shall be determined after attributing to each of the persons all the rights and powers mentioned in subsection (6) below that are not already attributed to that person for the purposes of subsections (1) to (4) above.
(6)The rights and powers referred to in subsection (5) above are—
(a)rights and powers which the person is entitled to acquire at a future date or which he will, at a future date, become entitled to acquire;
(b)rights and powers of other persons, to the extent that they are rights or powers falling within subsection (7) below;
(c)if the person is resident in the United Kingdom, rights and powers of any person who is resident in the United Kingdom and connected with the person; and
(d)if the person is resident in the United Kingdom, rights and powers which for the purposes of subsection (5) above would be attributed to a person who is resident in the United Kingdom and connected with the person (a “UK connected person”) if the UK connected person were himself the person.
(7)Rights and powers fall within this subsection to the extent that they—
(a)are required, or may be required, to be exercised in any one or more of the following ways, that is to say—
(i)on behalf of the person;
(ii)under the direction of the person; or
(iii)for the benefit of the person; and
(b)are not confined, in a case where a loan has been made by one person to another, to rights and powers conferred in relation to property of the borrower by the terms of any security relating to the loan.
(8)In subsections (6)(b) to (d) and (7) above, the references to a person’s rights and powers include references to any rights or powers which he either—
(a)is entitled to acquire at a future date, or
(b)will, at a future date, become entitled to acquire.
(9)In paragraph (d) of subsection (6) above, the reference to rights and powers which would be attributed to a UK connected person if he were the person includes a reference to rights and powers which, by applying that paragraph wherever one person resident in the United Kingdom is connected with another person, would be so attributed to him through a number of persons each of whom is resident in the United Kingdom and connected with at least one of the others.
(10)In determining for the purposes of this section whether one person is connected with another in relation to a company, subsection (7) of section 839 shall be disregarded.
(11)References in this section—
(a)to rights and powers of a person, or
(b)to rights and powers which a person is or will become entitled to acquire,
include references to rights or powers which are exercisable by that person, or (when acquired by that person) will be exercisable, only jointly with one or more other persons.”
(2)In consequence of sub-paragraph (1), in section 756(3) (application of provisions of Part XI)—
(a)omit paragraph (a); and
(b)omit the words following paragraph (b).