Section 160 | Indirect participation: one of several major participants

(1)Subsection (2) applies for the purposes of—

(a)sections 148(2) and (3), 154(5), 175 and 204(4),

(b)in Part 2, section 132(7), ...

(c)in Part 5, section 219(2) , ...

(d)in Part 6A, section 259NB(4) , ...

(e)in Part 10, section 463(4)...

(f)Repealed

(2)A person is indirectly participating in the management, control or capital of another person at a particular time if the first person is, at that time, one of a number of major participants in that other person's enterprise.

(3)For the purposes of this section, a person (“A”) is a major participant in another person's enterprise at a particular time if at that time—

(a)that other person (“the subordinate”) is a body corporate or firm, and

(b)the 40% test is met in the case of each of two persons—

(i)who, taken together, control the subordinate, and

(ii)of whom one is A.

(4)For the purposes of this section, the 40% test is met in the case of each of two persons wherever each of them has interests, rights and powers representing at least 40% of the holdings, rights and powers in respect of which the pair of them fall to be taken as controlling the subordinate.

(5)For the purposes of this section—

(a)the question whether a person is controlled by any two or more persons taken together, and

(b)any question whether the 40% test is met in the case of a person who is one of two persons,

is to be determined after attributing to each of the persons all the rights and powers which would be attributed by section 159(2) to a person were it being decided under section 159(2) whether that person is indirectly participating in the management, control or capital of another person.

(6)References in this section—

(a)to rights and powers of a person, or

(b)to rights and powers which a person is or will become entitled to acquire,

include references to rights or powers which are exercisable by that person, or (when acquired by that person) will be exercisable, only jointly with one or more other persons.