465. Meaning of 'close company'.

For the purposes of the Corporation Tax Acts1, a company2 is a 'close company' if, subject to specified exceptions3:


    (1)     it is one which is under the control4 of five or fewer participators5, or of participators who are directors6; or


    (2)     five or fewer participators, or participators who are directors, together possess or are entitled to acquire:


      (a)     such rights as would, in the event of the winding up7 of the company ('the relevant company') entitle them to receive the greater part of the assets of the relevant company which would then be available for distribution among the participators;