Associated company

Associated company

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Client owns 24% of a holding company with 3 subsidiaries  (father owns the other 76%)

He wants to invest in a completely different new business to be run by his wife. Is there any percentage shareholding that would make this an associated company for CT ?

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James Reeves
By James Reeves
15th Sep 2014 12:33

Not commercially interdependent

I think that provided the companies are not substantially commercially interdependent then since the client does not control the current holding company (his father does) then it doesn't matter what shares he holds in his wife's company.  Only if the two companies were commercially interdependent would they be associated companies.

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