Part XIIControl Over Authorised Persons

Acquiring, increasing and reducing control

181Reducing control

(1)

For the purposes of this Part, a controller of a person (“A”) who is a UK authorised person reduces his control over A if—

(a)

the percentage of shares held by the controller in A decreases by any of the steps mentioned in subsection (2),

(b)

the percentage of shares held by the controller in a parent undertaking (“P”) of A decreases by any of the steps mentioned in subsection (2),

(c)

the percentage of voting power which the controller is entitled to exercise, or control the exercise of, in A decreases by any of the steps mentioned in subsection (2),

(d)

the percentage of voting power which the controller is entitled to exercise, or control the exercise of, in P decreases by any of the steps mentioned in subsection (2), or

(e)

the controller ceases to be a parent undertaking of A,

unless the controller ceases to have the kind of control concerned over A as a result.

(2)

The steps are—

(a)

from 50% or more to 33% or more but less than 50%;

(b)

from 33% or more to 20% or more but less than 33%;

(c)

from 20% or more to 10% or more but less than 20%;

(d)

from 10% or more to less than 10%.

(3)

In paragraphs (a) to (d) of subsection (1) “the controller” means—

(a)

the controller;

(b)

any of the controller’s associates; or

(c)

the controller and any of his associates.