Section 131: Building liability orders: associates, Building Safety Act 2022

A body corporate (X) controls a company (Y) if X possesses or is entitled to acquire—

at least half of the issued share capital of Y,

such rights as would entitle X to exercise at least half of the votes exercisable in general meetings of Y,

such part of the issued share capital of Y as would entitle X to at least half of the amount distributed, if the whole of the income of Y were in fact distributed among the shareholders, or

such rights as would, in the event of the winding up of Y or in any other circumstances, entitle it to receive at least half of the assets of Y which would then be available for distribution among the shareholders.

A body corporate (X) controls a limited liability partnership (Y) if X—

holds a majority of the voting rights in Y,

is a member of Y and has a right to appoint or remove a majority of other members, or

is a member of Y and controls alone, or pursuant to an agreement with other members, a majority of the voting rights in Y.

A body corporate (X) controls another body corporate (Y) if X has the power, directly or indirectly, to secure that the affairs of Y are conducted in accordance with X's wishes.

In subsection (3) a reference to "voting rights" is to the rights conferred on members in respect of their interest in a limited liability partnership to vote on those matters which are to be decided on by a vote of the members of the limited liability partnership.

In determining under any of subsections (2) to (4) whether one body corporate (X) controls another, X is treated as possessing—

any rights and powers possessed by a person as nominee for it, and

any rights and powers possessed by a body corporate which it controls (including rights and powers which such a body corporate would be taken to possess by virtue of this paragraph).

For the purposes of section 130 as it applies in relation to a building, where a person's interest in the building is held on trust, a body corporate which is a beneficiary of the trust is to be regarded as associated with the person.

Section 131: Building liability orders: associates

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