Section 236M | Controlling interest requirement ^F1

(1)A settlement meets the controlling interest requirement if—

(a)the trustees—

(i)hold more than 50% of the ordinary share capital of C, and

(ii)have powers of voting on all questions affecting C as a whole which, if exercised, would yield a majority of the votes capable of being exercised on them,

(b)the trustees are entitled to more than 50% of the profits available for distribution to the equity holders of C,

(c)the trustees would be entitled, on a winding up of C, to more than 50% of the assets of C available for distribution to equity holders, and

(d)there are no provisions in any agreement or instrument affecting C’s constitution or management or its shares or securities whereby the condition in paragraph (a), (b) or (c) can cease to be satisfied without the consent of the trustees.

(2)See section 236T for further provision relating to the controlling interest requirement.