Part 10 U.K.Close companies

Chapter 2U.K.Basic definitions

Meaning of “close company": generalU.K.

441Treatment of some persons as participators or directors for the purposes of section 439(3)U.K.

(1)The following provisions apply for the purpose of determining whether under subsection (3) of section 439 five or fewer participators, or participators who are directors, together possess or are entitled to acquire rights such as are mentioned in paragraph (a) or (b) of that subsection.

(2)A person is to be treated as a participator in or director of the relevant company if the person is a participator in or director of any other company which would be entitled to receive assets in the notional winding up of the relevant company on the basis set out in section 440.

(3)No account is to be taken of a participator which is a company unless the company possesses or is entitled to acquire the rights in a fiduciary or representative capacity.

(4)But subsection (3) does not apply for the purposes of section 440.