Companies Act 2014 section 280G

Qualification of company as medium company: holding company

Section 280G sets out the rules for determining when a holding company qualifies as a medium-sized company, based on whether the group it heads meets the medium group size criteria.

• A holding company can only qualify as medium-sized if its entire group qualifies as a medium-sized group, and no member of the group is an ineligible entity.
• A medium-sized group must meet at least two of three thresholds: turnover not exceeding €50 million net (or €60 million gross), balance sheet total not exceeding €25 million net (or €30 million gross), and average employees not exceeding 250.
• For subsequent financial years, qualification depends on meeting the size criteria across the current and previous year, with transitional rules that allow the group to retain its medium status if it qualified in the preceding year.
• Group figures are calculated by aggregating each member's individual figures, using either net amounts (after eliminating intercompany transactions) or gross amounts consistently for both turnover and balance sheet total.