Section 67A Meaning of “associated”: supplementaryF1

(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.

Annotations

Textual amendments

F1: S. 67A inserted (31.3.2022) by Nuclear Energy (Financing) Act 2022 (c. 15), ss. 40(2), 44(1)(d)