PART 18

General

Meaning of “associate”
229
1
For the purposes of this Act, any question whether a person is an associate of another person must be determined in accordance with the following provisions of this section.
2
Subsection (1) is subject to section 230(1).
3
And any reference, whether in the following provisions of this section or in regulations under section 230(1), to a person being an associate of another person is to be taken to be a reference to their being associates of each other.
4
A person (in this subsection referred to as “A”) is an associate of a natural person (in this subsection referred to as “B”) if A is—
a
B's spouse or civil partner,
b
a relative of B or of B's spouse or civil partner, or
c
the spouse or civil partner of such a relative.
5
A person (in this subsection referred to as “C”) is an associate of any person (in this subsection referred to as “D”) with whom C is in partnership and of any person who is an associate of D.
6
A firm is an associate of any person who is a member of the firm.
7
For the purposes of this section, a person (in this subsection referred to as “E”) is a relative of a natural person (in this subsection referred to as “F”) if E is F's brother, sister, uncle, aunt, nephew, niece, lineal ancestor or lineal descendant treating any relationship of the half-blood as a relationship of the whole-blood and the stepchild or adopted child of someone (in this subsection referred to as “S”) as S's child.
8
References in this section to a spouse or civil partner include references to a former spouse or civil partner and a reputed spouse or civil partner.
9
A person (in this subsection referred to as “G”) is an associate of any person whom G employs or by whom G is employed.
10
For the purposes of subsection (9), any director or other officer of a company is to be treated as employed by the company.
11
A company is an associate of another company if—
a
the same person has control of both, or if a person (in this subsection referred to as “H”) has control of one and persons who are H's associates have control of the other, or
b
a group of two or more persons has control of each company and the groups either—
i
consist of the same persons, or
ii
could be regarded as consisting of the same persons by treating (in one case or more) a member of either group as replaced by a person of whom that member is an associate.
12
A company is an associate of another person (in this subsection referred to as “J”) if—
a
J has control of it, or
b
J and persons who are J's associates together have control of it.
13
For the purposes of this section, a person (in this subsection referred to as “K”) is taken to have control of a company—
a
if 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 K's directions or instructions, or
b
if K is entitled to exercise, or control the exercise of, ⅓ or more of the voting power at any general meeting of the company or of another company which has control of the company.
14
Where two or more persons together satisfy either of the conditions mentioned in subsection (13), they are taken to have control of the company.
15
In subsections (10) to (14), “company” includes any body corporate (whether incorporated in Great Britain or elsewhere).