78DExtension of basic rule to interests held by other persons under control or acting jointly

1. A person (A) has a control interest in a partnership interest that another person (B) has if—

2. B or B's directors are accustomed or under an obligation (whether legally enforceable or not) to act in accordance with A's directions, instructions, or wishes in relation to a power or control referred to in section 78B; or
3. A has the power to exercise, or control the exercise of, 20% or more of the votes that may be cast at a meeting of shareholders of B; or
4. A has the power to acquire or dispose of, or to control the acquisition or disposal of, shares that have 20% or more of the votes that may be cast at a meeting of shareholders of B; or
5. A and B are related bodies corporate; or
6. A and B have an agreement, arrangement, or understanding to act in concert in relation to a power or control referred to in section 78B.

7. For the purposes of subsection (1),—

   share includes—

   1. a partnership interest in a partnership:
   2. a share in a company:
   3. a share in an industrial and provident society:
   4. a share in a building society

   shareholder means a holder of a share.

8. For the purposes of subsection (1)(a), director means,—

9. in relation to a company, any person occupying the position of a director of the company by whatever name called:
10. in relation to a partnership (other than a limited partnership), any partner:
11. in relation to a limited partnership, any general partner:
12. in relation to a body corporate or unincorporate other than a company, partnership, or limited partnership, any person occupying a position in the body that is comparable with that of a director of a company.

13. For the purposes of subsection (1)(d), a body corporate (A) is related to another body corporate (B) if—

14. B is A's holding company or subsidiary; or
15. more than half of A's issued shares (other than shares that carry no right to participate beyond a specified amount in a distribution of either profits or capital) are held by B and bodies corporate that are related to B (whether directly or indirectly, but other than in a fiduciary capacity), or vice versa; or
16. more than half of the issued shares (other than shares that carry no right to participate beyond a specified amount in a distribution of either profits or capital) of each of A and B are held by members of the other (whether directly or indirectly, but other than in a fiduciary capacity); or
17. the businesses of A and B have been so carried on that the separate business of each body corporate, or a substantial part of that business, is not readily identifiable; or
18. there is another body corporate to which A and B are both related.