| Commentary

29.1 Terminology

| Commentary

29 Accounting provisions

29.1 Terminology

Perhaps the most important set of provisions in the Companies Act 2006 relating to company groups is that which deals with the need to produce consolidated accounts. Instead of employing the usual terminology, in other words, referring to the ‘holding company’ or the ‘subsidiary company’, the accounting provisions refer to the ‘parent undertaking’ and the ‘subsidiary undertaking’1. An undertaking is a parent undertaking in relation to another undertaking (a ‘subsidiary undertaking’) in very much the same circumstances as those where a company is a holding company in relation to a subsidiary company2

To continue reading
View the latest version of this document, as well as thousands of others like it, sign in to LexisLibrary or register for a free trial