Part XXVI Interpretation

F1736“Subsidiary”, “holding company” and “wholly-owned subsidiary”.

(1)

A company is a “subsidiary” of another company, its “holding company”, if that other company—

(a)

holds a majority of the voting rights in it, or

(b)

is a member of it and has the right to appoint or remove a majority of its board of directors, or

(c)

is a member of it and controls alone, pursuant to an agreement with other shareholders or members, a majority of the voting rights in it,

or if it is a subsidiary of a company which is itself a subsidiary of that other company.

(2)

A company is a “wholly-owned subsidiary” of another company if it has no members except that other and that other’s wholly-owned subsidiaries or persons acting on behalf of that other or its wholly-owned subsidiaries.

(3)

In this section “company” includes any body corporate.