Part 3Decommissioning of energy installations

Chapter 1Nuclear sites: decommissioning and clean-up

General

I167Meaning of “associated”

1

For the purposes of this Chapter, one body corporate is associated with another if one of them has a significant interest in the other or a third body corporate has a significant interest in both of them; and subsections (2) to (5) set out the circumstances in which one body corporate (“A”) has a significant interest in another (“B”).

2

Where B is a company, A has a significant interest in B if A possesses or is entitled to acquire—

a

20% or more of the issued share capital of B,

b

such rights as would entitle A to exercise 20% or more of the votes exercisable in general meetings of B,

c

such part of the issued share capital of B as would entitle A to 20% or more of the amount distributed if the whole of the income of B were in fact distributed among the shareholders, or

d

such rights as would, in the event of the winding up of B or in any other circumstances, entitle it to receive 20% or more of the assets of B which would then be available for distribution among the shareholders.

3

Where B is a limited liability partnership, A has a significant interest in B if A—

a

holds 20% or more of the voting rights in B,

b

is a member of B and has a right to appoint or remove 20% or more of other members, or

c

is a member of B and controls alone, or pursuant to an agreement with other members, 20% or more of the voting rights in B.

4

In subsection (3)(a) and (c) the references to “voting rights” are to the rights conferred on members in respect of their interest in a limited liability partnership to vote on those matters which are to be decided on by a vote of the members of the limited liability partnership.

5

In any case, A has a significant interest in B if A has the power, directly or indirectly, to secure that the affairs of B are conducted in accordance with A's wishes.

6

In determining whether, by virtue of this section, A has a significant interest in B, A shall be taken to possess—

a

any rights and powers possessed by a person as nominee for A, and

b

any rights and powers possessed by a body corporate which A controls (including rights and powers which such a body corporate would be taken to possess by virtue of this paragraph).

7

In order to determine whether one body corporate controls another for the purposes of subsection (6)(b), subsections (2) to (5) and (6)(a) are to be applied, but as if—

a

for “has a significant interest in” in each place there were substituted “ controls ”, and

b

for “20%” in each place there were substituted “ 50% ”.