Section YC 5 — Income Tax Act 2007: Treatment of special corporate entities

YC 5 Treatment of special corporate entities When this section applies (1) This section applies for the purposes of sections YC 2 to YC 6 to a company that is a special corporate entity. Company treated as issuing shares (2) If no shares have been issued by the special corporate entity, it is treated as having issued shares that carry all shareholder decision-making rights and all other rights of ownership in relation to the special corporate entity. Who is treated as shareholder? (3) The shares are treated as held by— (a) the members for the time being of the special corporate entity, if any: (b) the directors for the time being of the special corporate entity, if no members exist: (c) in the case of a public authority or state enterprise that has neither members nor directors, the Minister of the Crown for the time being who performs a director’s functions. Persons also treated as holding related rights (4) The persons treated under subsection (3) as holding the shares are also treated as holding— (a) any options over the shares; and (b) any rights derived from the shares and options, including any interests treated as held under section YC 4 . Shareholders treated as notional single person existing with entity (5) The members, directors, or Ministers are treated as holding their shares and related rights— (a) in their capacity as members, directors, or Ministers; and (b) as a notional single person that— (i) exists as long as the special corporate entity exists; and (ii) holds nothing other than shares and related rights concerning the entity. Defined in this Act: company , director , public authority , share , special corporate entity , state enterprise , Compare: 2004 No 35 ss OD 3(3)(a) , OD 4(3)(a)