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(1)Subject to subsection (7) below, for the purposes of this Act any question whether a person is an associate of another person shall be determined in accordance with the following provisions of this section (any reference, whether in those provisions or in regulations under the said subsection (7), to a person being an associate of another person being taken to be a reference to their being associates of each other).
(2)A person is an associate of an individual if that person is the individual’s [F1husband, wife or civil partner]F1 , or is a relative, or the [F1husband, wife or civil partner]F1 of a relative, of the individual or of the individual’s [F1husband, wife or civil partner]F1 .
(3)A person is an associate of any person with whom he is in partnership, [F2and of any person who is an associate of any person with whom he is in partnership;] and a firm is an associate of any person who is a member of the firm.
(4)For the purposes of this section a person is a relative of an individual if he is that individual’s brother, sister, uncle, aunt, nephew, niece, lineal ancestor or lineal descendant treating—
(a)any relationship of the half blood as a relationship of the whole blood and the stepchild or adopted child of any person as his child; and
(b)an illegitimate child as the legitimate child of his mother and reputed father,
(5)A person is an associate of any person whom he employs or by whom he is employed; and for the purposes of this subsection any director or other officer of a company shall be treated as employed by that company.
[F4(5A)A company is an associate of another company—
(a)if the same person has control of both, or a person has control of one and persons who are his associates, or he and persons who are his associates, have control of the other; or
(b)if a group of two or more persons has control of each company, and the groups either consist of the same persons or could be regarded as consisting of the same persons by treating (in one or more cases) a member of either group as replaced by a person of whom he is an associate.
(5B)A company is an associate of another person if that person has control of it or if that person and persons who are his associates together have control of it.
(5C)For the purposes of this section a person shall be taken to have control of a company if—
(a)the directors of the company or of another company which has control of it (or any of them) are accustomed to act in accordance with his directions or instructions; or
(b)he is entitled to exercise, or control the exercise of, one third or more of the voting power at any general meeting of the company or of another company which has control of it;
and where two or more persons together satisfy either of the above conditions, they shall be taken to have control of the company.]
(6)[F5In subsections (5), (5A), (5B), (5C) above,]“company” includes any body corporate (whether incorporated in Great Britain or elsewhere).
(7)The Secretary of State may by regulations—
(a)amend the foregoing provisions of this section so as to provide further categories of persons who, for the purposes of this Act, are to be associates of other persons; and
(b)provide that any or all of subsections (2) to (6) above (or any subsection added by virtue of paragraph (a) above) shall cease to apply, whether in whole or in part, or shall apply subject to such modifications as he may specify in the regulations;
and he may in the regulations make such incidental or transitional provision as he considers appropriate.
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Modifications etc. (not altering text)
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