Taxes Consolidation Act 1997 section 433

Meaning of "participator", "associate", "director" and "loan creditor"

Section 433 defines the terms "participator", "associate", "director" and "loan creditor" for the purposes of Part 13 (close companies).

• A participator is any person with a share or interest in the capital or income of a company, including holders of present or future rights to share capital, voting rights, distributions, loan capital, or the ability to direct how company income or assets are applied for their benefit.
• An associate of a participator includes close relatives, partners, trustees of a relevant settlement, and any other person interested in shares or obligations held in trust or forming part of a deceased person's estate — subject to exceptions for approved pension scheme trusts and qualifying employee benefit trusts.
• A director includes not only a formally appointed director but also any person whose instructions the directors follow, and any manager who alone or with associates owns or controls 20% or more of the ordinary share capital of the company.
• A loan creditor is any person (other than a bank lending in the ordinary course of its business) to whom the company is indebted for money borrowed, capital assets acquired, or redeemable loan capital issued — and includes anyone holding a beneficial interest in such a debt or loan capital.