8 November 2006
469.This section sets out the definition of “connected person” which is used in many of the sections in this Part in relation to the regulation of directors. The persons who are “connected” for this purpose with a director include:
certain family members (see section 253);
certain companies with which the director is connected (see section 254);
trustees of a trust under which the director or a relative mentioned in section 253 or a company with which the director is connected is a beneficiary (but not if the trust exists for the purposes of an employees’ share scheme as defined in section 1166 or a pension scheme);
certain partners; and
certain firms with legal personality (such as a Scottish firm in which the director is a partner).
470.This section, together with sections 253 to 255, replaces section 346 of the 1985 Act.