Co-operative and Community Benefit Societies Act 2014

101 Meaning of society being a “subsidiary” of another society E+W+S

(1) For the purposes of this Part, a registered society (S) is a “subsidiary” of another registered society (P) if—

(a) P is a member of S and controls the composition of its committee, or

(b) P can exercise a majority of the votes to which S's members are entitled under its rules.

(2) For this purpose P is regarded as controlling the composition of S's committee if—

(a) P can appoint and remove all or a majority of the committee's members, by exercising a power that is exercisable by it without the consent or concurrence of any other person, or

(b) P is a member of the committee and, by exercising such a power, can appoint and remove the remaining members or such number of members as, together with itself, would constitute a majority.

(3) For the purposes of subsection (2) P is treated as having power to appoint a person to membership of S's committee if—

(a) the person can be appointed only if P exercises a power of a kind mentioned in subsection (2)(a) in favour of the person, or

(b) the person's appointment follows necessarily from the person's appointment as a member of P's committee.

(4) Section 100(4) applies (with necessary modifications) for the purposes of this section as it applies for the purposes of section 100.