Part 8Oil activities

Chapter 2Basic definitions

271“Associated companies”

1

For the purposes of this Part two companies are associated with one another if—

a

one is a 51% subsidiary of the other,

b

each is a 51% subsidiary of a third company,

c

one is owned by a consortium of which the other is a member,

d

one has control of the other, or

e

both are under the control of the same person.

2

For the purposes of this section—

a

a company is owned by a consortium if at least 75% of the company's ordinary share capital is beneficially owned by other companies each of which beneficially owns at least 5% of that capital, and

b

the other companies each owning at least 5% of that capital are the members of the consortium.

3

In this section “control” has the same meaning as in Part 10 (close companies) (see sections 450 and 451).