394Meaning of “material interest” in section 393U.K.
(1)For the purposes of section 393(4)(a) an individual has a material interest in a company if a relevant person meets condition A or B.
(2)In this section “relevant person” means—
(a)the individual, either alone or with one or more associates (see section 395), or
(b)any associate of the individual with or without such other associates.
(3)Condition A is that the relevant person is the beneficial owner of, or able directly or indirectly to control, more than 5% of the ordinary share capital of the company.
(4)Condition B is that the relevant person possesses, or is entitled to acquire, such rights as would, in the event of the winding up of the company or in any other circumstances, give an entitlement to receive more than 5% of the assets which would then be available for distribution among the participators.
(5)In this section—
“control” has the meaning given by section 416(2) to (6) of ICTA, and
“participator” has the meaning given by section 417(1) of ICTA.