Commentary on Sections Schedule 3: Register of people with significant control Schedule 1A: References to people with significant control over a company Rights to appoint or remove members of the board
508.Paragraph 16 clarifies that the third condition relates to directors holding a majority of the voting rights on all or substantially all matters.
509.This provision is intended to capture scenarios which would give the holder of the right a level of control over the company broadly equivalent to holding more than 25% of the shares or voting rights. It reflects similar provision elsewhere in CA 2006 (see section 1162(2)(b), in relation to parent and subsidiary undertakings) and in the Financial Services and Markets Act 2000 (FSMA) (see section 89J(4)(b), in relation to the power of competent authority to call for information). Those provisions equally seek to define what is meant by one party having control over another.
510.If an entity does not have a board of directors, references are to be read as references to the equivalent management body of the entity (paragraph 17).