Q&As

What is the meaning of 'control' in a private company limited by shares?

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Published by a ³ÉÈËÓ°Òô Corporate expert
Published on: 29 July 2015
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From a Company law perspective, ‘control’ can mean having the ability to:

  1. •

    control the management of the company (eg the ability to appoint or remove directors the majority of the directors)

  2. •

    exercise a majority of the voting rights in a company

  3. •

    exercise a dominant influence over a company

Directors

By way of example, section 255 of the Companies Act 2006 (CA 2006) sets out the circumstances in which a director is taken to control a body corporate. A director will be deemed to control a body corporate where he or any person connected with him:

  1. •

    is ‘interested’ in any part of the equity share capital (ie, ordinary shares) of the company, or

  2. •

    is entitled to exercise or control the exercise of any part of the voting power at any general meeting of the company, and

  3. •

    he, the persons connected with him and the other directors of that company, together—

    1. â—¦

      are interested in more than 50% of that share capital, or

    2. â—¦

      are

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United Kingdom
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Key definition:
Private company definition
What does Private company mean?

A private company is not a public company within the meaning of the Companies Act 2006 and is prohibited from making any offer of securities of the company to the public.

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