Associated Companies

Associated Companies

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Hello

Two trading companies. Each owned a third each by same 3 brothers.

No trading or loans between the two companies. Based purely on shareholdings are they associated?

Thanks in advance
Anon

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By qayyum
27th Mar 2009 14:18

They are associated
My view will be that the two companies are associated by reason of the fact that both are UNDER THE CONTROL OF SAME PERSONS (section 416(1).

My understanding is that concession C9 only comes into play where one has to attribute the shareholdings of one person to the other e.g. the shares held by the wife will be attributed to the husband in considering control. However in this case no attribution is needed.

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By User deleted
27th Mar 2009 14:11

They are Associated
A company is associated with another company if both are under the control of the same company or person or persons.

They are also caught under the fact that you are associated with your brother.

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