Companies Act 2014 section 7

Definition of "subsidiary"

Section 7 sets out the comprehensive definition of when one company is considered a subsidiary of another for the purposes of the Companies Act 2014.

• A company becomes a subsidiary when another company controls its board, holds more than half its equity share capital or voting shares, or holds a majority of voting rights
• Subsidiary status also arises where the parent has the right to exercise dominant influence, actually exercises such influence, or manages both companies on a unified basis
• Shares held in a fiduciary capacity or as security for lending are generally excluded when determining subsidiary status
• Shares held by nominees or by the parent's own subsidiaries are attributed to the parent when assessing control