Definition of related persons

(1) Persons are “related persons” if– (a) they are officers or directors of one another’s (b) in the case of a partnership, they are a partner and that partnership, and the partner, either alone or together with persons who are related to the partner under another paragraph of this definition, owns 25 per cent or more of the rights to income or capital of the partnership; (c) they are a shareholder and a company limited by shares in which the shareholder, either alone or together with persons who are related to the shareholder under another paragraph of this definition– (i) controls 25 per cent or more of the voting power in the company; or 27 (ii) owns 25 per cent or more of the rights to distributions of income or capital by the company; (d) in the case of two companies, a person directly or indirectly, either alone or together with persons who are related to the person under another paragraph of this definition, owns, controls, or holds 25 per cent or more of the voting power or the rights to distributions of income or capital in both of them; (e) one of them directly or indirectly controls the (f) both of them are directly or indirectly controlled by a third person; (g) together they directly or indirectly control a third person; (h) they are members of the same family; or (i) in the case of a trust, they are the trust and a person who is or may be a beneficiary of that trust or whose relative is or may be a beneficiary of the trust. (2) Persons who are associated in business with one another in that one is the sole agent, sole distributor, or sole concessionaire, however described, of the other are related persons only if they fall within the criteria set out in sub-section (1). (3) For the purposes of this section, one person controls another if the former is legally or operationally in a position to exercise restraint or direction over the latter. 28