Section 1011 | Meaning of “associated company” in section 1009

(1)For the purposes of section 1009 a company is an “associated company” of another at any time when—

(a)one has control of the other, or

(b)both are under the control of the same person or persons.

(2)For the purposes of subsection (1) a person controls a company if the person has power to secure that the affairs of the company are conducted in accordance with the person's wishes, and has that power—

(a)by holding shares in the company or any other company,

(b)by possessing voting power in relation to the company or any other company, or

(c)by virtue of any powers conferred by—

(i)the articles of association of the company or any other company, or

(ii)any other document regulating the company or any other company.

(3)Shares held by a company, and any voting power or other powers arising from the shares, must be ignored for the purposes of subsection (2) if—

(a)a profit on a sale of the shares would be treated as a trading receipt of a trade carried on by the company, and

(b)the shares are not assets of an insurance company's long-term insurance fund.