The Building Societies (Designation of Qualifying Bodies) (No. 3) Order 1993

Meaning of subordinate organisation

3.—(1) In this Schedule “subordinate organisation” is a body corporate in which another body corporate holds, directly or indirectly, 5% or more of the issued shares or corresponding membership rights.

(2) For the purpose of sub–paragraph (1) above–

(a) “holds directly or indirectly” means that a body corporate holds shares or corresponding membership rights in another body corporate either directly or through another body corporate (or bodies corporate), or partly directly and partly through another body corporate (or bodies corporate);

(b) methods the same as those set out in section 838 (subsidiaries) of the Income and Corporation Taxes Act(1) shall be used to determine an indirect holding as if references to “own” in that section are references to “hold”, and other derivatives of “own” shall be construed accordingly;

(c) references to “ordinary share capital” in section 838 of the Income and Corporation Taxes Act shall be read as references to shares, or as the case may be, corresponding membership rights in a body corporate.

(1)

1988 c. 1.