Part 5Enterprise investment scheme

Chapter 2The investor

Meaning of connection with issuing company

167Employees, directors and partners

1

An individual is connected with the issuing company if the individual—

a

is an employee of—

i

the issuing company,

ii

any subsidiary of the issuing company, or

iii

a partner of the issuing company or any of its subsidiaries,

b

is a partner of—

i

the issuing company, or

ii

any subsidiary of the issuing company, or

c

subject to section 168, is a director of—

i

the issuing company,

ii

any subsidiary of the issuing company, or

iii

a company which is a partner of the issuing company or any of its subsidiaries.

2

In subsection (1) “subsidiary”, in relation to the issuing company, means a company which at any time in period A is a 51% subsidiary of the issuing company, whether or not it is such a subsidiary while the individual or associate concerned is such an employee, partner or director as is mentioned in that subsection.

3

For the purposes of this section and sections 168 and 169, in the case of an individual (“A”) who is both a director and an employee of a company—

a

references (however expressed) to A in A's capacity as a director of the company include A in A's capacity as an employee of the company, but

b

(apart from that) A is to be treated as a director, and not as an employee, of the company.