8

This section is subject to section 67A.

67AMeaning of “associated”: supplementary

1

In determining whether, by virtue of section 67, A has a significant interest in B, the following are to be disregarded—

a

relevant share security rights that A holds in relation to B;

b

subject to subsection (4), shares in B that are acquired by A in consequence of the exercise of relevant share security rights that A holds in relation to B;

c

any power that A has, directly or indirectly, to secure that the affairs of B are conducted in accordance with A’s wishes by virtue of—

i

relevant share security rights that A holds in relation to B,

ii

arrangements that are designed to facilitate the exercise of relevant share security rights that A holds in relation to B, or

iii

relevant asset security rights that A holds in relation to B, if A also holds relevant share security rights in relation to B.

2

A holds “relevant share security rights” in relation to B if A holds—

a

rights to enforce a security interest over shares in B,

b

rights relating to enforcement of a security interest over shares in B, or

c

rights that enable A to preserve the value of a security interest over shares in B.

3

A holds “relevant asset security rights” in relation to B if A holds—

a

rights to enforce a security interest over any of B’s assets,

b

rights relating to enforcement of a security interest over any of B’s assets, or

c

rights that enable A to preserve the value of a security interest over any of B’s assets.

4

Subsection (1)(b) does not apply if the shares acquired by A are retained by A for a purpose other than that of preserving the value of the security interest in question or of realising it.

5

In this section—

a

a reference to “shares” includes a reference to rights attached to shares;

b

a reference to A holding rights in relation to B includes a reference to—

i

A holding those rights on trust for another person, and

ii

A being the beneficiary of a trust of those rights;

c

a reference to A acquiring shares in B includes a reference to—

i

A acquiring shares in B to hold on trust for another person, and

ii

another person acquiring shares in B to hold on trust for A;

d

a reference to rights includes a reference to powers.