Companies Act 2006 Explanatory Notes

Chapter 4: Prohibition on Subsidiary Being Member of Its Holding Company

255.This Chapter is a restatement of the provisions of section 23 of the 1985 Act and Schedule 2 to that Act as it applies for the purposes of that section. Unless in circumstances covered by an exception, a company cannot be a member of its own holding company. There is no change of substance to the provision in the 1985 Act.

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