3 & 4 Geo.
6. c. 29,
s. 55(3) and
2 & 3 Eliz.
2. c. 44.
s. 2901) (8)
2 & 3 Bliz 2. c. 44,
1. 3101) ().
Quoted
shares and debentures.
3 & 4 Geo. 6, c. 29, 9. 5504).
Interpretation
of control
6, c. 29,
1. 55(5), 2 &
3 Eliz. 2,
38
the company as a whole, which if exercised would have yielded a majority of the voles capable of being exercised thereon, or if he could have obtained such control by an exercise at that time of a power exercisable by him or with his consent; or
(b) to have powers equivalent to control of a com- pany if he either has the capacity, or could by an exercise of a power exercisable by him or with his consent obtain the capacity, to exercise or to control the exercise of any of the following powers, that is to say, the powers of a board of directors or of a governing director of the com- pany, power to nominate a majority of directors or a governing director thereof, power to veto the appointment of a director thereof, or powers of a like nature.
(4) This section shall not apply to the valuation of shares or debentures of a class which have been dealt with on the Hong Kong Stock Exchange in the ordinary course of business on that exchange and such dealings have been recorded during the year ending with the death of the deceased, and, in making an apportionment under paragraph (c) of subsection (2) in the case of a company having shares or debentures of such a class, the part of the value of the assets of the company to be apportioned to shares or debentures of that class shall be determined by reference to the prices recorded of such dealings.
(5) Control of a company which a person had in a 3 & 4 Gee. fiduciary capacity shall be disregarded for the purposes of this section but in the cases dealt with in subsection (7). this section shall apply as if the deceased bad, within three years of his death, had control of the company otherwise than in a fiduciary capacity, but only as to the valuation of the shares in or debentures of the company as respects which one of the conditions contained in paragraph (a) or (b) or the proviso hereto is satisfied, namely—
c. 44. $3. 2901) & (5)
& 31(2)
(a) that immediately after the deceased's death a person having control or powers equivalent to control of the company, either alone or in con- junction with his relatives, has a beneficial interest in possession in the shares or debentures; (b) that immediately before and after the death the shares or debentures are held by the trustees of some trust who then have control of the company
2 & 3 Eliz, 1. c. 44.
31(2).
2 & 1 Eliz. 2. c. 44. 1. 310)
39
by virtue of shares in or debentures of the com- pany held by them as such trustees, notwithstand- ing the fact that such trustees had control in a fiduciary capacity.
Provided that, in the case of shares or debentures falling to be valued on the death by virtue of a gift inter vivos made by the deceased, or by virtue of a disposition or determination, in relation to which paragraph (h) of subsection (1) and subsection (1A) of section 6 have effect, of an interest limited to cease on the death, the above conditions shall not apply, and the conditions shall be that immediately after the death or at any previous time since the gift, or since the disposition or determination, as the case may be, the donce, or the person becoming entitled by virtue of or upon the disposition or determination. has or bad control or powers equivalent to control of the company, either alone or in conjunction with his relatives.
(6) In determining for the purpose of subsection (5), whether a person at any time has or had control of a company either alone or in conjunction with his relatives. or a beneficial interest in possession in any shares in or debentures of a company-
(a) where that person or a relative of his is or was at any time entitled under a trust, either alone or in conjunction with that person's relatives, to not less than nine-tenths of the income arising from any such shares or debentures, that person or the relative in question, as the case may be, shall be treated as being or having been able at that time to control the exercise by the trustees of the trust or other persons in whom those shares or debentures are or were vested of any powers attached to those shares or debentures:
(b) any shares in or debentures of the company, or interests therein, which form part of a person's ostate at his death shall be treated as vesting immediately on his death in the legatees or persons entitled on intestacy, without regard to the powers exercisable for the administration of the estate:
(c) there shall, in so far as the Commissioner so
directs, be disregarded-
() any limited interest subsisting at the relevant time in any shares in or debentures of the company; and
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