Paragraph 4

England, Wales and Scotland

(1)

For the purposes of section 258(2)(c) an undertaking shall not be regarded as having the right to exercise a dominant influence over another undertaking unless it has a right to give directions with respect to the operating and financial policies of that other undertaking which its directors are obliged to comply with whether or not they are for the benefit of that other undertaking.

(2)

A “control contract” means a contract in writing conferring such a right which—

(a)

is of a kind authorised by the memorandum or articles of the undertaking in relation to which the right is exercisable, and

(b)

is permitted by the law under which that undertaking is established.

(3)

This paragraph shall not be read as affecting the construction of the expression “actually exercises a dominant influence” in section 258(4)(a).

Notes on Schedule 10A

Textual amendments

F1: Sch. 10A repealed (6.4.2008) by Companies Act 2006 (c. 46), ss. 1295, 1300, Sch. 16; S.I. 2007/3495, art. 8(a), Sch. 2 Pt. 1 (with arts. 7, 12)

Notes on Right to exercise dominant influence

Textual amendments

F1: Sch. 10A added by Companies Act 1989 (c. 40, SIF 27), ss. 21(2), 213(2), Sch. 9 (subject to the transitional and saving provisions mentioned in S.I. 1990/355, arts. 6–9)