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.