# Electricity Act 1989, Paragraph 37


(1) For the purposes of this Schedule, one body corporate is associated with another if one of them controls the other or a third body corporate controls both of them, and sub-paragraphs (2) to (6) set out the circumstances in which one body corporate (“A”) controls another (“B”).
(2) Where B is a company, A controls B if A possesses or is entitled to acquire—
(a) one half or more of the issued share capital of B,
(b) such rights as would entitle A to exercise one half 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 one half 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 one half 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 controls B if A—
(a) holds a majority of the voting rights in B,
(b) is a member of B and has a right to appoint or remove a majority of other members, or
(c) is a member of B and controls alone or pursuant to an agreement with other members, a majority of the voting rights in B.
(4) In sub-paragraph (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 controls 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 sub-paragraphs (2) to (5), A controls B, A is to be taken to possess—
(a) any rights and powers possessed by a person as nominee for it, and
(b) any rights and powers possessed by a body corporate which it controls (including rights and powers which such a body corporate would be taken to possess by virtue of this sub-paragraph).

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Source: https://www.legislation.gov.uk/ukpga/1989/29/schedule/2A/paragraph/37 (the official version)
Page: https://openlegislation.uk/electricity-act-1989/schedule-2A/paragraph-37
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.