Q&As

What is a ‘subsidiary’ company?

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Published on LexisPSL on 21/04/2017

The following Corporate Q&A provides comprehensive and up to date legal information covering:

  • What is a ‘subsidiary’ company?

Section 1159 of the Companies Act 2006 (CA 2006) sets out the meaning of ‘subsidiary’, stating that:

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

a) holds a majority of the voting rights in it, or

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

c) is a member of it and controls alone, pursuant to an agreement with other members, a majority of the voting rights in it,

or if it is a subsidiary of a company that is itself a subsidiary of that other company.’

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