I thought it might be appropriate for me to interpose briefly, as this gives me an opportunity to respond to one of the questions I was asked this morning. I hope to address the queries raised earlier by the hon. Member for Barrow and Furness about the meeting of “connected persons”, as dealt with in clause 71. The clause defines the concept of connected persons used throughout part 1 of the Bill, including in clauses 3, 16, 21, 23, 25 and 44, and schedule 2. Clause 71 states that “one person is connected with another if they are group undertakings in relation to each other.”
This definition has the same meaning as in the Companies Act 2006. Providing this interpretation of “connected persons” is necessary to make part 1 of the Bill work effectively and it is predominantly used to ensure that parties do not use “connected persons” as an anti-avoidance measure to avoid the prohibitions in the Bill.