Companies Act 2014 section 1254

Application of section 114 in relation to PULCs

Section 1254 extends the rules in section 114 (which govern a subsidiary holding shares in its holding company) so that they also cover situations where a subsidiary becomes a member of a public unlimited company (PULC) by means other than acquiring and holding shares.

• Section 114 restricts the ability of a subsidiary to acquire and hold shares in its holding company.
• For PULCs, membership can arise otherwise than through acquiring and holding shares.
• Section 1254 ensures the section 114 restrictions extend to cover these alternative forms of membership in a PULC holding company.
• This provision applies exclusively where the holding company is a PULC.