Section 147 – Meaning of “10% or greater share in a company”
275.Subsection (1) sets out that this section applies for the purposes of section 146.
276.Subsection (2) sets out an individual (P) as entitled to a 10% or greater share in a company if he or she possesses (directly or indirectly) or is entitled to acquire any of the shares or rights set out in that subsection.
277.Subsection (3) requires any rights P or any other person has as a loan creditor to be disregarded for the assumption in subsection (2)(d).
278.Subsection (4) sets out that for subsection (2), a person is treated as entitled to acquire anything which they are, or will at a future date, be entitled to acquire.
279.Subsection (5) provides that, if a person possesses any rights or powers on behalf of another (A), or may be required to exercise any rights or powers at A’s direction or on A’s behalf, those rights and powers shall be attributed to A. for the purposes of determining whether they are entitled to a 10% or greater share.
280.Subsection (6) provides for further attributions of rights and powers to a person (from their associates and from companies which they control, or that they control together with their associates).
281.Subsection (7) sets out the rights and powers to be attributed under subsection (6).
282.Subsection (8) provides for a person nevertheless to be treated as having 10% or greater share in a company if they are able to exercise or acquire direct or indirect control over the company’s affairs even if the conditions in subsection (2) are not otherwise met.
283.Subsection (9) provides that the definitions for “associate”, “control”, “loan creditor” and “participator” are the same as in CTA 2010.
