• Meaning Of “Subsidiary” And Related Expressions

    • 1015. Meaning Of “Subsidiary” Etc

      (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 members, a majority of the voting rights in it,
      or if it is a subsidiary of a company that is itself a subsidiary of that other company.
      (2) For the purposes of subsection (2) an undertaking shall be treated as a member of another undertaking–
      (a) if any of its subsidiary undertakings is a member of that undertaking, or
      (b) if any shares in that other undertaking are held by a person acting on behalf of the undertaking or any of its subsidiary undertakings.
      (3) 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.
      (4) Schedule 6 contains provisions explaining expressions used in this section and otherwise supplementing this section.
      (5) In this section and that Schedule “company” includes any body corporate.

    • 1016. Meaning Of “Subsidiary” Etc: Power To Amend

      (1) The Board may make rules amending the provisions of section 1015 (meaning of “subsidiary” etc) and Schedule 6 (meaning of “subsidiary” etc: supplementary provisions) so as to alter the meaning of the expressions “subsidiary”, “holding company” or “wholly-owned subsidiary”.