Companies Act 2014 section 1087H

Definition of subsidiary

Section 1087H provides that shares held or powers exercised by a central securities depository are disregarded when determining whether one company is a subsidiary of another.

• When assessing whether a company is a subsidiary of another company under section 7, shares held by a central securities depository (CSD) are excluded from the calculation.
• Powers exercisable by a CSD, or by a body nominated by that CSD, are similarly disregarded for the purposes of the subsidiary test.
• This exclusion applies only where the shares are held, or powers exercised, for the purpose of providing a securities settlement system.
• For the purposes of this rule, "shares" includes relevant securities, and the terms "lower company" and "superior company" have the same meanings as in section 7.

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