The Agricultural Holdings (Relinquishment and Assignation) (Scotland) Regulations 2020

New entrants to farming: supplemental

9.—(1) Subject to paragraph (2), for the purposes of regulation 8(2), A does not have a relevant interest if A is—

(a) as the case may be—

(i) the executor, guardian or legal representative (within the meaning of Part 1 of the Children (Scotland) Act 1995) of a tenant, crofter, small landholder or owner,

(ii) the trustee or interim trustee in the sequestration of a tenant’s estate, or

(iii) a liquidator, interim liquidator or provisional liquidator appointed to the tenant, small landholder, crofter or owner,

(b) a trustee of a trust which holds a relevant interest,

(c) a person to whom a lease constituting a 1991 Act tenancy was bequeathed in accordance with section 11(1) of the 1991 Act, where—

(i) A did not accept the bequest,

(ii) the bequest was declared null and void under section 12A(6)(a) or 12B(2)(a) of the 1991 Act, or

(iii) the will or other testamentary writing containing the bequest was made before 23rd December 2016 and the bequest was declared null and void under section 11(6) of the 1991 Act, or

(d) a person to whom a lease constituting a short limited duration tenancy, a limited duration tenancy or a modern limited duration tenancy is bequeathed in accordance with section 21(1) of the Land Reform (Scotland) Act 2003(1), where—

(i) A did not accept the bequest,

(ii) the bequest was declared null and void under section 12A(6)(a) or 12B(2)(a) of the 1991 Act, or

(iii) the will or other testamentary writing containing the bequest was made before 23rd December 2016 and the bequest was declared null and void under section 11(6) of the 1991 Act.

(2) For the purposes of paragraphs (1)(a) and (b) A does have a relevant interest where A is also a beneficiary in respect of the same relevant interest.

(3) For the purposes of regulation 8(2) and (3), A has control of a legal person (“L”) if A—

(a) holds or controls, directly or indirectly, more than 50% of the voting rights in L,

(b) holds or controls the right, directly or indirectly, to appoint or remove more than 50% of the board of directors of L, or

(c) otherwise has the right to exercise, or actually exercises, dominant influence or control over L.

(4) In paragraph (3)—

(a) references to voting rights in L are to the rights conferred on shareholders in respect of their shares (or, in the case of L not having a share capital, on members or equivalent persons) to vote at a general meeting of L on all or substantially all matters,

(b) where L does not have general meetings at which matters are decided by the exercise of voting rights, references to voting rights in L are to be read as references to rights in relation to L that are equivalent to those of a person entitled to exercise voting rights in a company,

(c) references to the board of directors of L, where L does not have such a board, are to be read as references to the equivalent management body of L, and

(d) references to the right to appoint or remove a majority of the board of directors of L are to the right to appoint or remove directors holding a majority of the voting rights at meetings of the board on all or substantially all matters.

(1)

2003 asp 11.