Securities Markets Act 1988

  • repealed
  • Securities Markets Act 1988: repealed, on 1 December 2014, by section 4(1)(b) of the Financial Markets (Repeals and Amendments) Act 2013 (2013 No 70).
  • Previous title has changed
5B Extension of basic rule to interests held by other persons under control or acting jointly
  • (1) A person (A) has the relevant interests in securities that another person (B) has if—

    • (a) B or B's directors are accustomed or under an obligation (whether legally enforceable or not) to act in accordance with A's directions, instructions, or wishes in relation to a power or control referred to in section 5; or

    • (b) A has the power to exercise, or control the exercise of, the right to vote attached to 20% or more of the securities of B; or

    • (c) A has the power to acquire or dispose of, or to control the acquisition or disposition of, 20% or more of the securities of B; or

    • (d) A and B are related bodies corporate; or

    • (e) A and B have an agreement, arrangement, or understanding to act in concert in relation to a power or control referred to in section 5.

    (2) For the purposes of this Act, a body corporate (A) is related to another body corporate (B) if—

    • (a) B is A's holding company or subsidiary within the meaning of sections 5 and 6 of the Companies Act 1993; or

    • (b) more than half of A's issued shares (other than shares that carry no right to participate beyond a specified amount in a distribution of either profits or capital) is held by B and bodies corporate related to B (whether directly or indirectly, but other than in a fiduciary capacity); or

    • (c) more than half of the issued shares (other than shares that carry no right to participate beyond a specified amount in a distribution of either profits or capital) of each of A and B is held by members of the other (whether directly or indirectly, but other than in a fiduciary capacity); or

    • (d) the businesses of A and B have been so carried on that the separate business of each body corporate, or a substantial part of that business, is not readily identifiable; or

    • (e) there is another body corporate to which A and B are both related.

    Section 5B: inserted, on 29 February 2008, by section 4 of the Securities Markets Amendment Act 2006 (2006 No 47).