Commentary

Section 8.4.1 ‘Subsidiary’ and ‘holding company’ (Section 1159(1))

BOILERPLATE AND COMMERCIAL CLAUSES vol 4(3)
| Commentary

Section 8.4.1 ‘Subsidiary’ and ‘holding company’ (Section 1159(1))

| Commentary

8.4 Statutory definitions

The Companies Act 2006 sets out the following definitions:

8.4.1 ‘Subsidiary’ and ‘holding company’ (Section 1159(1))1

A company is a ‘subsidiary’ of another company, its ‘holding company’, if that other company:

  1. (a)

        holds a majority of the voting rights in it, or

  2. (b)

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

  3. (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

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