There is no express reference to charities in the legislation defining what is a close company1. However, it might be material to know whether a charitable corporation is a close company or not because of its effect on any trading subsidiary which it may own. The question of whether a charitable corporation is a close company will be determined by the application of general principles. The constitution and the operation of the charitable corporation must be examined in each particular case.
A charitable corporation being a body corporate is a company for the purposes of the Tax Acts2. A close company is basically defined as being a company which is under the control of five or fewer 'participators' or of any number of directors who are 'participators'3.
Where the charitable corporation is a company limited by shares and
To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to Tolley+™ Research or register for a free trial
Web page updated on 24 Aug 2024 14:25