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.