Commentary

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

BOILERPLATE AND COMMERCIAL CLAUSES vol 4(3)

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

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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