A company cannot be the principal company of a group if it is
itself a 75% subsidiary of another company. However, there is an
exception where company B is a 75% subsidiary of company A, but not
an effective 51% subsidiary of company A. In such circumstances
company B may be the principal company of a group.
So, in relation to a group headed by company A there may be
companies which satisfy the 75% subsidiary requirement in terms of
ordinary share capital but which are not members of the A group
because they are not effective 51% subsidiaries of A. In such cases
you will need to determine which of these companies is capable of
being the principal company of a lower tier group.
