Noel Dempsey (Meath, Fianna Fail)

The Deputy tabled this amendment following the Committee Stage debate last Wednesday. It was agreed on Committee Stage that we would recheck the point with the Attorney General and the Parliamentary Counsel. On their strong advice, I must leave the figure of 20% stand. The reason for doing so, as explained to me, is that, based on precedents and similar definitions in financial legislation, 20% of the allotted share capital or voting rights is regarded as an appropriate amount for the purpose of the definition of an associate of an undertaking. According to the advice I have received, a figure of 10% would be regarded as too low. In addition, the definition of an associate of an undertaking is comprehensive enough to cover a number of other business relationships. This was a concern expressed by the Deputy on Committee Stage. The definition is wide enough to incorporate other business relationships such as a holding company of the undertaking, a subsidiary of the company of the undertaking and a partnership or a joint venture in which the undertaking has a financial interest. The point the Deputy seeks to cover is covered in the legislation as it stands.

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