Section 197. Persons connected with directors

(1) A person shall be deemed to be connected with a director if the person is—

(a) a member of the director’s family;

(b) a body corporate which is associated with that director;

(c) a trustee of a trust, other than a trustee for an employee share scheme or pension scheme, under which that director or a member of the director’s family is a beneficiary; or

(d) a partner of that director or a partner of a person connected with that director.

(2) For the purposes of this section—

(a) “a member of the director’s family” means the director’s spouse, parent, child, including adopted child and stepchild, brother, sister and the spouse of the director’s child, brother or sister;

(b) a body corporate is associated with a director if—

(i) the body corporate is accustomed or is under an obligation, whether formal or informal, or the majority of directors of the body corporate is accustomed, to act in accordance with the directions, instructions or wishes of that director;

(ii) that director has a controlling interest in the body corporate; or

(iii) that director, or persons connected with that director, or that director and persons connected with him, are entitled to exercise, or control the exercise of, not less than twenty per centum of the votes attached to voting shares in the body corporate.