(1)For the purposes of this Chapter a company is wholly owned by a charity if condition A or B is met.
(2)Condition A is that—
(a)the company has an ordinary share capital, and
(b)every part of that share capital is owned by a charity (whether or not the same charity).
(3)Condition B is that—
(a)the company is limited by guarantee, and
(b)every beneficiary of the company is or must be a charity or a company wholly owned by a charity.
(4)Ordinary share capital of a company is treated as owned by a charity if a charity—
(a)directly or indirectly owns that share capital within the meaning of Chapter 3 of Part 24, or
(b)would be taken so to own it if references in that Chapter to a body corporate included references to a charity which is not a body corporate.
(5)A beneficiary of a company is a person who—
(a)is beneficially entitled to participate in the company's divisible profits, or
(b)will be beneficially entitled to share in any of the company's net assets available for distribution on its winding up.
For the purposes of this Chapter a person is associated with a company if the person is connected with—
(a)the company, or
(b)a person connected with the company.
In this Chapter “charity” means—
(a)a body of persons or trust established for charitable purposes only,
(b)a scientific research association (as defined in section 469),
(c)the Trustees of the National Heritage Memorial Fund,
(d)the Historic Buildings and Monuments Commission for England, or
(e)the National Endowment for Science, Technology and the Arts.