Subsidiary Definition

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GLOSSARY

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What does Subsidiary mean?

There are two suggested definitions for the term 'subsidiary', as commonly used in agreements. CA 2006, s 1159 provides that a company is a holding company of another company (its subsidiary) if it satisfies one of three tests, two of which require it to be a member of the other company (as well as to possess certain rights, which go to its voting powers). Membership of a company is a question of fact and the court has found that if a company (company A) has transferred shares in another company (company B) to a lender in connection with the taking of security and the name of that lender or the lender’s nominee has been entered in the register of members, then company A is not a member of company B in respect of those shares: see Enviroco Ltd v Farstad Supply A/S.

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Establishing a share incentive plan (SIP) and granting SIP awards—all-encompassing resource pack

Establishing a share incentive plan (SIP) and granting SIP awards—all-encompassing resource pack For more general information on share incentive plans (SIPs), see Practice Note: What is a share incentive plan? Step Details of step Lexis®PSL resources required to implement step Timing of step 1 Determine whether the company qualifies to operate a SIP. The SIP regime is prescriptive and sets out numerous requirements that must be met at the time the awards are granted, including in relation to the company granting the awards. It is essential to establish whether the company whose shares are being granted under award qualifies to operate a SIP first. The proposed award holder(s) must also meet certain requirements in order to be granted SIP awards. For further detailed information on the SIP eligibility requirements relating to the company, see Practice Note: SIPs—qualifying companies and type of shares. For further detailed information on the SIP eligibility requirements relating to the employee, see Practice Note: SIPs—who can be granted an award? For a checklist...

Limited liability partnerships—application of Companies Act 2006 to LLPs—checklist

Limited liability partnerships—application of Companies Act 2006 to LLPs—checklist The majority of law applicable to limited liability partnerships (LLPs) is actually modified company law rather than partnership law. The Limited Liability Partnerships (Application of Companies Act 2006) Regulations 2009, SI 2009/1804 (2009 Regulations) apply many parts of the Companies Act 2006 (CA 2006), with appropriate modifications, to LLPs. The 2009 Regulations also apply Parts 1, 2, 3 and 5 of the Companies (Cross-Border Mergers) Regulations 2007, SI 2007/2974 to LLPs. The Limited Liability Partnerships (Accounts and Audit) (Application of Companies Act 2006) Regulations 2008, SI 2008/1911 (2008 Regulations) apply parts of CA 2006 in relation to accounts and audit to LLPs with appropriate modifications. This Checklist sets out those provisions of CA 2006 that are applied to LLPs pursuant to these regulations. Companies Act 2006 (CA 2006), section Statutory instrument applying CA 2006 provision Subject Part 2—Company formation CA 2006, s 12A 2009 Regulations, SI 2009/1804, reg 3A (link accessible within SI 2009/1804, reg 4) (inserted by SI 2016/340, reg 5 and SI...

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Remedies for connected lender liability in consumer credit

Remedies for connected lender liability in consumer credit This Practice Note examines a purchaser’s causes of action and remedies where the credit in a supplier-purchaser agreement is financed by a third party. The Consumer Credit Act 1974 (CCA 1974) provides that in certain instances where there is a connection between the supplier of goods and services and the creditor, the borrower will be able to seek a remedy against the creditor under CCA 1974, s 75 where the supplier has made a misrepresentation or is in breach of contract. This Practice Note looks at the main requirements of section 75 and the circumstances in which it might be applied when purchasing goods or services with a credit card. Overview Under a contract for the sale or supply of goods or services as between a supplier and purchaser, the purchaser’s causes of action and remedies are well known. However, what is the position where the transaction is financed by a third-party creditor? In certain debtor-creditor-supplier (or DCS) relationships, a consumer...

The Pension Protection Fund—eligibility and entry

The Pension Protection Fund—eligibility and entry Requirements for PPF entry The requirements for a scheme to enter the PPF are: • the scheme must be an eligible scheme—see: What schemes are eligible? below • either: ◦ a qualifying insolvency event must occur in relation to a scheme employer—see: What is a qualifying insolvency event? below, or ◦ the employer is unlikely to continue as a going concern and it meets the conditions in SI 2005/590, reg 7—see: Alternative route to PPF entry, below • the insolvency practitioner in relation to the employer must confirm that a scheme rescue is not possible—see: Duty of insolvency practitioner to issue notices confirming status of scheme (section 122 notices), and • the assets of the scheme must be less than the 'protected liabilities' (broadly, the benefits that would be payable to members by the PPF)—see: Protected liabilities, below The statutory provisions regarding the eligibility of schemes for entry into the PPF are contained in: • sections 120–168 of the Pensions Act...

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Ireland—Subsidiary definition

Ireland—Subsidiary definition Subsidiary • This is a Precedent definitions for the term ‘subsidiary’, which is a term commonly used in agreements. It will not be appropriate to include the term in every type of agreement and, if it is included, the definition may not be appropriate in the suggested form. Careful consideration should be given to when and how the suggested defined term is used. For

Phantom share option agreement

Phantom share option agreement This AGREEMENT is made on [insert date of execution of the phantom share option agreement] Parties 1 [insert name of company whose shares are relevant to the phantom option] (registered number [insert registered number of company]) whose registered office is at [insert registered address of company] (the Company); and 2 [insert name of option holder] of [insert address of option holder] (the Option Holder) Background (A) The Company has agreed to grant to the Option Holder as at the date of this Agreement a Phantom Option on the terms set out in this Agreement. (B) The Phantom Option provides an entitlement to cash and not shares. 1 Definitions In this Agreement, except where the context otherwise requires, the words and expressions set out below will bear the following meanings, namely: Cash Payment • means the cash sum payable on the exercise of the Phantom Option, which shall be calculated in accordance with clause 6.2; Control • has the meaning given...

Dive into our 180 Precedents related to Subsidiary

Where a statutory corporation is a holding company and a subsidiary below it is a limited company, would the statutory corporation need to appear on a PSC register of the subsidiary limited company or does it fall outside of the requirements/guidance?

Where a statutory corporation is a holding company and a subsidiary below it is a limited company, would the statutory corporation need to appear on a PSC register of the subsidiary limited company or does it fall outside of the requirements/guidance? A statutory corporation is likely to fall within Companies Act 2006, s 790C(12),

Where a document forms a schedule to an agreement, if the document in the schedule is signed rather than being printed as a separate agreement and then signed, is it a valid execution of that document?

Where a document forms a schedule to an agreement, if the document in the schedule is signed rather than being printed as a separate agreement and then signed, is it a valid execution of that document? This question envisages a written agreement, which contains, in a schedule, the form of a further agreement, which the parties may sign on some future occasion. When that occasion arises, the parties simply sign the schedule, rather than printing out a new document in the form of the schedule and then signing it. This question is whether that will constitute a binding contract when executed in such circumstances. The general principle at common law is that a contract can be made quite informally and no writing or other form is necessary. This basic rule is subject to statute, which may require a particular form of contract, eg in writing and/or other formalities. The most obvious examples are contracts for the sale of land (section 2 of the Law of Property (Miscellaneous Provisions) Act 1989) and guarantees...

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Property weekly highlights—19 June 2025

This week's edition of Property weekly highlights includes: cases on adverse possession and unincorporated associations, rectification of a transfer, landlords’ insurance payments and rent repayment orders, regulations concerning occupation contracts in Wales and the statutory right of first refusal, New versions of CPSE.1 and CPSE.7 taking account of Economic Crime (Transparency and Enforcement) Act 2022 and a planning reform working paper on reforming site thresholds.

Banking and Finance weekly highlights—19 June 2025

This week's edition of Banking and Finance weekly highlights includes: (1) DBT publish second progress report on Economic Crime and Corporate Transparency Act 2023 implementation; (2) IFRS Foundation publishes jurisdictional profiles to document adoption progress of ISSB Standards; and (3) ISDA launches pre-adherence for new digital notices platform.

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