Document ID: chunk:federal_register_of_legislation:C2025C00045:section:8c
Version: federal_register_of_legislation:C2025C00045
Segment Type: section
Provision Reference: s 8C
Character Range: 68164–69032

8C  Meanings of subsidiary and holding entity

Meaning of subsidiary
 (1) A corporate entity (the lower entity) is a subsidiary of another corporate entity (the higher entity) if:
 (a) the higher entity:
 (i) is in a position to control more than half the voting power in the lower entity; or
 (ii) holds more than half the issued securities in the lower entity (disregarding any securities that carry no right to participate beyond a specified amount in a distribution of either profits or capital); or
 (b) the lower entity is a subsidiary of a corporate entity that is the higher entity's subsidiary (including because of one or more applications of this subsection).

Meaning of holding entity
 (2) A corporate entity (the higher entity) is a holding entity of another corporate entity (the lower entity) if the lower entity is a subsidiary of the higher entity.