Subsidiary Company

A company controlled by another company. A company is deemed to be a subsidiary of another if (but only if): (a) that other (i) is a member of it and controls the composition of its board of directors; or (b) holds more than half in nominal value of its equity share capital; or (b) the first-mentioned company is a subsidiary of any company which is that others subsidiary. "Equity share capital" means its issued share capital excluding any part of it which, neither as respects dividends nor as respects capital, carries any right to participate beyond a specified amount in a distribution. The composition of a company`s board of directors is deemed to be controlled by another company if (but only if) that other company by the exercise of some power exercisable by it without the consent or concurrence of any other person can appoint or remove the holders of all or a majority of the directorships.