Corporation Tax Act 2010 section 447

Meaning of "shares beneficially held by the public"

Section 447 defines what it means for shares to be "beneficially held by the public" for the purpose of determining whether a quoted company can be treated as not being a close company under section 446.

• Shares are treated as held by the public if they are held by a non-close company, held on trust for a registered pension scheme, or do not form part of a principal member's holding
• Shares are excluded from public holding if they are held by a director of the company, an associate of a director, a company controlled by such directors or associates, an associated company, or a fund benefiting employees or directors
• The individuals whose benefit disqualifies a fund from being a public holding include current and past employees and directors of the company or its associated companies, and their dependants
• The term "shares" includes stock, and a principal member's holding means the shares carrying that member's voting power