Introduction Equity holders Overview Section 145: Conditions 2 and 3: limitations in sections 143 and 144
565.This section is the basic rule about relief involving a link company (see section 133). It is based on section 406 of ICTA.
566.Subsection (2) deals with a claim by a company that is a member of the same group as the link company for relief from a company owned by the consortium.
567.The overlapping period for the claim is still determined by reference to the accounting periods of the actual claimant company (P) and the surrendering company (C). But the subsection treats the link company (L) as if it were the claimant company for the purpose of section 143(3). So the “applicable proportion” of the surrenderable amounts is based on L’s interest in Cin the overlapping period (if necessary, based on an average of that period – see section 143(4)(b)).
568.Subsection (3) deals with a claim by a company owned by a consortium for relief from a company that is a member of the same group as the link company.
569.The overlapping period for the claim is still determined by reference to the accounting periods of the claimant company (C) and the actual surrendering company (P). But the subsection treats the link company (L) as if it were the surrendering company for the purpose of section 144(3). So the “applicable proportion” of C’s profits is based on L’s interest in C in the overlapping period (if necessary, based on an average of that period – see section 144(4)(b)).