Companies Act, 1990

Connected persons.

26.—(1) For the purposes of this Part, a person is connected with a director of a company if, but only if, he is—

(a) that director's spouse, parent, brother, sister or child;

(b) a person acting in his capacity as the trustee of any trust, the principal beneficiaries of which are the director, his spouse or any of his children or any body corporate which he controls; or

(c) a partner of that director;

unless that person is also a director of the company.

(2) A body corporate shall also be deemed to be connected with a director of a company if it is controlled by that director.

(3) For the purposes of this section, a director of a company shall be deemed to control a body corporate if, but only if, he is, alone or together with any of the persons referred to in paragraph (a), (b) or (c) of subsection (1), interested in more than one-half of the equity share capital of that body or entitled to exercise or control the exercise of more than one-half of the voting power at any general meeting of that body.

(4) In subsection (3)

(a) “equity share capital” has the same meaning as in section 155 of the Principal Act; and

(b) references to voting power exercised by a director shall include references to voting power exercised by another body corporate which that director controls.

(5) The provisions of section 54 shall have effect for the purposes of subsection (3) with the substitution of the words “more than half” for the words “one-third or more” in subsections (5) and (6) of that section.