| Commentary

27 Maintenance of share capital

| Commentary

27 Maintenance of share capital

The Companies Act 2006 forbids a subsidiary or the nominee of a subsidiary from being a shareholder in its holding company and consequently any purported transfer or issue of shares in the holding company to a subsidiary company or its nominee will be void1. The ban on the provision of financial assistance in relation to a public company’s shares extends to assistance given by any of that company’s subsidiaries2.

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