Commentary

153 Void allotments—allotment of shares to a subsidiary company

COMPANIES vol 10(1) Directors and Other Officers, Shareholders, Shares and Share Capital
| Commentary

153 Void allotments—allotment of shares to a subsidiary company

| Commentary

5: VOID AND VOIDABLE ALLOTMENTS

153 Void allotments—allotment of shares to a subsidiary company

Subject to certain exceptions, a subsidiary (or a nominee acting on behalf of a subsidiary) may not be a member of its holding company, and any allotment or transfer of shares in a company to its subsidiary is void1.

There are a number of exceptions where the prohibition does not apply, namely2:

  1. 153.1

        where the subsidiary is concerned only as personal representative;

  2. 153.2

        where the subsidiary is concerned only as trustee (unless the holding company or a subsidiary of it is beneficially interested under the trust)3; and

  3. 153.3

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