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Companies Act 2006
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- UK Public General Acts
- 2006 c. 46
- SCHEDULE 7
- Paragraph 4
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Right to exercise dominant influence
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4(1)For the purposes of section 1162(2)(c) an undertaking shall not be regarded as having the right to exercise a dominant influence over another undertaking unless it has a right to give directions with respect to the operating and financial policies of that other undertaking which its directors are obliged to comply with whether or not they are for the benefit of that other undertaking.
(2)A “control contract” means a contract in writing conferring such a right which—
(a)is of a kind authorised by the articles of the undertaking in relation to which the right is exercisable, and
(b)is permitted by the law under which that undertaking is established.
(3)This paragraph shall not be read as affecting the construction of section 1162(4)(a).
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