277. Director "controlling" a body corporate
Past version: effective from 14/06/2015 - 13/06/2015
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(1) This section defines what is meant by references in this Part to a director "controlling" a body corporate.
(2) A director of a company is taken to control a body corporate if, but only if—
(a) he or any person connected with him—
(i) is interested in any part of the equity share capital of that body, or
(ii) is entitled to exercise or control the exercise of any part of the voting power at any general meeting of that body, and
(b) he, the persons connected with him and the other directors of that company, together—
(i) are interested in more than 50% of that share capital, or
(ii) are entitled to exercise or control the exercise of more than 50% of that voting power.
(3) The rules set out in Schedule 1 (references to interest in shares or debentures) apply for the purposes of this section.
(4) References in this section to voting power the exercise of which is controlled by a director include voting power whose exercise is controlled by a body corporate controlled by him.
(5) Shares in a company held as treasury shares, and any voting rights attached to such shares, are disregarded for the purposes of this section.
(6) For the avoidance of circularity in the application of section 274 (persons connected with a director)—
(a) a body corporate with which a director is connected is not treated for the purposes of this section as connected with him unless it is also connected with him by virtue of subsection (2)(c) or (d) of that section (connection as trustee or partner), and
(b) a trustee of a trust the beneficiaries of which include (or may include) a body corporate with which a director is connected is not treated for the purposes of this section as connected with a director by reason only of that fact.