Associated companies

Associated companies

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An individual owns 50% of company A and 100% of company B. The remainder of the shares in company A are owned by a fellow director and the two directors are not related in any way.

Are A and B associated companies?

I should know this but corporation tax isnt my thing!

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By MBK
31st Mar 2011 12:46

It depends ....

... on whether the Articles of the 50:50 company provided for a casting vote at shareholders meetings and, if so, whether Mr A is entitled to exercise that casting vote.

If the answer is Yes then they are associated. Otherwise they are not.

 

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