Part 5: Other provisions about safety standards, etc. Remediation of Certain defects Section 121 – Associated persons Effect
This section sets out the circumstances in which a person is associated with a partnership or body corporate for the purposes of sections 122 to 125 and Schedule 8.
	Subsection (2) sets out that if an interest in a relevant building is held on trust at the qualifying time, then any body corporate or partnership which is a beneficiary of the trust at the qualifying time is considered associated. The "qualifying time" is defined in section 119 as the start of 14 February 2022. The five-year period leading up to the qualifying time is defined as "the relevant period". Subsection (11) defines partnership for the purposes of this section.
	Subsections (3) and (4) set out the circumstances in which a person is associated with a body corporate. Subsection (5) sets out the circumstances in which a body corporate is associated with another body corporate.
	Subsection (3) sets out that a partnership is associated with any person who was a partner, other than a limited partner, in the partnership in the five years ending at the qualifying time.
	Subsection (4) provides that a body corporate is associated with any person who was a director of the body corporate in the five years leading up to the qualifying time.
	Subsection (5) sets out the circumstances in which a body corporate is associated with another body corporate. Subsection (5)(a) sets out that two bodies corporate are associated if, in the five years leading up to 14 February 2022, they had a director in common. Subsection (5)(b) sets out that two bodies corporate are associated if, before 14 February 2022, one of them controlled the other or a third body corporate controlled both of them.
	Subsections (6) to (8) set out the cases in which a body corporate is regarded as controlling another body corporate by looking at the ownership of the share capital and setting out how differing voting rights at general meetings have an impact on whether or not the companies are associated.
	Subsection (6) sets out what control looks like between differing companies. In particular, it 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 (7) sets out how to work out the circumstances when a body corporate (X) controls a limited liability partnership (Y). In this case, 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 alone or through agreements with other members).
	Subsection (8) sets out if a body corporate has the power to ensure another acts in the way in which it wishes, then that body corporate has control of the other.
	Subsection (9) defines voting rights for the purposes of subsection (7). 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 (10) sets out that 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 (9) 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 (12) provides a power for the Secretary of State to set out in regulations that the application of subsections (3) to (5) can be modified for the purposes of sections 122 to 125 and Schedule 8. This allows the application of this section to be modified in relation to any reference to associated persons.