Meaning of "subsidiary" and "holding company":

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Meaning of "subsidiary" and "holding company":

Unread postby Admin » Thu Sep 27, 2012 1:17 pm

Meaning of "subsidiary" and "holding company":

(1) For purposes of this Ordinance, a company or body corporate shall be deemed to be a subsidiary of another if -

(a) that other company or body corporate , directly , or indirectly controls, beneficially owns or holds more than fifty per cent of its voting securities or otherwise has power to elect and appoint more than fifty per cent of its directors; or

(b) the first mentioned company or body corporate is a subsidiary of any company or body corporate which is that other's subsidiary.

(2) For the purpose of this Ordinance, a company shall be deemed to be another's holding company if, but only if, that other is its subsidiary:

Provided that, where a central depository holds more than fifty per cent of the voting securities of a company, such company shall not be deemed to be a subsidiary of the central depository save where such voting securities are held beneficially by the central depository in its own behalf.
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