CTM61560 - Close companies: loans to participators: material interest
A person can have a material interest through control of share capital or entitlement to a portion of the company's assets on its winding up.
Share capital
A person has a material interest in a company if:
- either on their own, or with one or more associates, or
- any associate of theirs with or without other associates,
is (are) the beneficial owner(s) of, or able directly or through the medium of other companies or by any other indirect means to control, more than 5% of the ordinary share capital.
Ordinary share capital means all the issued share capital, by whatever name called, of the company, other than share capital carrying a right to a dividend only at a fixed rate.
Winding up
A person has a material interest in a company if:
- either on their own, or with one or more associates, or
- any associate of theirs with or without other associates,
possesses, or is entitled to acquire, such rights that would in the event of the winding up of the company or any other circumstances, give an entitlement to receive more than 5% of the assets which would then be available for distribution among the participators.
