Commentary on Sections Overview Part 3: Eligibility of individuals Paragraph 20: Meaning of “material interest”
3007.This paragraph supplements paragraph 19. It contains the definition of “material interest” and is in its turn supplemented by paragraph 21. This paragraph derives from paragraph 17 of Schedule 8.
3008.Sub-paragraphs (2) and (3) separate out the two alternatives which, at present, are combined in the lengthy paragraph 17(1) of Schedule 8. In this Act, the two alternatives are called a material interest in the share capital of the company, and a material interest in the assets of a close company.