CTM18350 - Shadow ACT: definition of a group:
additional tests for 51% subsidiaries
SI1999/358, Reg. 6(3)
Where a company would not otherwise be a 51% subsidiary but:
- persons, whether company members or not
enjoy extraordinary rights or powers under the articles of
association or under any other document regulating the company,
and
- because of that fact, ownership of the
ordinary share capital may not be an appropriate test,
then, in considering whether the company is a 51% subsidiary,
holdings of all kinds of share capital, including preference
shares, or any particular category of share capital, or voting
power or any other kind of special power may be taken into account
instead of ordinary share capital.
