Associated company

by **dasmith** on Thu Aug 11, 2011 1:13 pm

Quick question please

I own one company 50 shares with a friend 50 shares

I own another company 60 shares my wife 40 shares

Both independent companies no commercial reliance etc

Are they associated?

thanks

by **pawncob** on Thu Aug 11, 2011 2:59 pm

Yes. (If you control first company)

by **dasmith** on Fri Aug 12, 2011 1:32 pm

Thanks, but If I only own 50% I dont control company so therefore not connected?

I though control was 51% or more.

by **section 44** on Mon Aug 15, 2011 11:40 am

Who controls the first company?

by **dasmith** on Mon Aug 15, 2011 1:39 pm

Its 50/50 so I understand no one does?

We make joint decisions.

by **taxationuk** on Mon Aug 15, 2011 2:03 pm

If you do not have control of both Companies then they are not associated.

However, as both partners of the first Company own 50% each is there any agreements in place regarding how split decisions would be decided?

Kind regards

Terry Hodge
Th@taxationuk.com

by **taxationuk** on Mon Aug 15, 2011 4:37 pm

Although you hold the shares 50/50 is there any dispute resolution in place for split decisions. If there is and it sides with you then you are deemed to have control.

If not then there is no control and no association.

Kind regards

Terry
th@taxationuk.com