Part 5: Other provisions about safety standards, etc. Building liability orders Section 131: Building liability orders: associates Effect
This section defines when bodies corporate are associated for the purposes of section 130. When two bodies corporate are associated then section 130 confers a power on the High Court to apply a Building Liability Order to them.
	Subsection (1) defines a body corporate (A) as being associated with a body corporate (B) if one controls the other, in which case they would have a parent and subsidiary relationship, or if both A and B are controlled by a third company, in which case A and B would be sister companies.
	Subsections (2) to (4) provide further definitions.
	Subsection (2) sets out that one body corporate controls another if one of them possesses or is entitled to acquire: at least half of the issued share capital of the other; half the voting rights exercisable in the general meetings of the other; at least half of the other’s income if all the income was distributed amongst the shareholders; or, rights which would entitle it to half the assets of the other which are available for distribution amongst the shareholders in the event of the other winding up.
	Subsection (3) sets out when a body corporate (X) controls a limited liability partnership (Y). X has control of Y if: X holds the majority of the voting rights in Y; X is a member of Y and has the right to appoint or remove a majority of other members; or, X is a member of Y and controls the majority of the voting rights in Y (either along or through agreements with other members).
	Subsection (5) defines voting rights for the purposes of subsection (3). Voting rights are the rights conferred on members in respect of their interest in Y to vote on matters decided on by a vote by members of Y.
	Subsection (4) sets out if a body corporate has the power to ensure another acts how it wishes it to, then that body corporate has control of the other.
	Subsection (6) sets out that for the purposes of subsections (1A) to (4) of this section, a body corporate is treated as possessing any rights and powers possessed by a person as nominee for it (such as a director) and any rights and powers possessed by a body corporate which it controls.
	The effect of subsection (6) is that bodies corporate, which are not directly associated, can be taken as associated if there is a chain of associated bodies corporate which connects them.
	Subsection (7) sets out that if an interest in a building is held on trust, and a relevant liability is incurred in relation to that building (as defined by section 130), a body corporate which is a beneficiary of the trust is considered associated.