If company A has a significant intercompany loan from company B, which is effectively funding company A's activities, does that give company B the right to exercise dominant influence in accordance with CA2006, Sch 7 point 4?
If so, should company B be considered a parent company of company A as detailed in CA2006 1162(4) and therefore require consolidation?
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Unless the loan agreement contains provisions
Unless the loan agreement includes provisions relating to 'influence', e.g. the appointment of a director, then no. It could of course have indirect control based on its ability to insist on repayment of the loan - again depending on the terms of the loan.
As for it being a parent company: unless it owns a majority of the share capital of A, then no.
Agree with Kevkava
It's correct that A could be regarded as the 'parent' of B for consolidation purposes even without holding any shares in B if there is dominant influence.
Dominant influence in this sense would normally look at issues like ability to appoint Directors to B's board, ability to directly influence B's policies & decisions etc. It's very unlikely that being a major creditor would, in itself, constitute dominant influence.
I don't think that makes a difference as regards your question, the fact that the shareholders or directors of A have those powers does not mean that company A has those powers, they're separate legal entities. The two companies are associated companies but not a dominant influence or defacto parent.
Overdraft...
There are numerous banks providing overdrafts to trading companies, which are repayable on demand, and without which the company may find it very hard to operate. That doesn't mean the bank is exercising 'dominant influence' (though it may feel like it from the business's point of view...)