Companies Act · 2021 Revised Edition · Part · Management and Administration Registered Office and Name
126. Meaning of subsidiary company a
Official textFrom Attorney General's Chambers, unchanged
Where the assets of a company consist in whole or in part of shares in another company, whether held directly or through a nominee and whether that other company is a company within the meaning of this Act or not, and -
the amount of the shares so held is at the time when the accounts of the holding company are made up, more than 50 per cent of the issued share capital of that other company or such as to entitle the company to more than 50 per cent of the voting power in that other company; or
the company has power (not being power vested in it by virtue only of the provisions of a debenture trust deed or by virtue of shares issued to it for the purpose in pursuance of those provisions) directly or indirectly to appoint the majority of the directors of that other company, that other company is deemed to be a subsidiary company within the meaning of this Act, and "subsidiary company" in this Act means a company in the case of which the conditions of this section are satisfied.
Where a company the ordinary business of which includes the lending of money holds shares in another company as security only, no account shall for the purpose of determining under this section whether that a other company is a subsidiary company be taken of the shares so held.
subsidiary company
"subsidiary company" means a company that is a subsidiary as defined in the Accounting Standards. ACCOUNTS AND AUDIT
Accounts to contain particulars as to loans to, and remuneration of, directors etc.
accounts
"accounts" means profit and loss accounts, or income and expenditure accounts, and balance sheets referred to in section 122 and includes notes (other than auditors' reports or directors' reports) attached or intended to be read with any of those profit and loss accounts, income and expenditure accounts or balance sheets;
Terms defined in this Act
accounts
Defined · s 2"accounts" means profit and loss accounts, or income and expenditure accounts, and balance sheets referred to in section 122 and includes notes (other than auditors' reports or directors' reports) attached or intended to be read with any of those profit and loss accounts, income and expenditure accounts or balance sheets;
debenture
Defined · s 2"debenture" includes debenture stock, bonds and any other securities of a company whether constituting a charge on the assets of the company or not;
share
Defined · s 2"share" means share in the share capital of a company, and includes stock except where a distinction between stock and shares is expressed or implied;
subsidiary company
Defined · s 120A"subsidiary company" means a company that is a subsidiary as defined in the Accounting Standards. ACCOUNTS AND AUDIT
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Part
Restrictions on Sale of Shares and Offers of Shares for Sale
Part
Prohibition of Partnerships with More Than Twenty Members
Part