Holding and Subsidiary Companies
Posted by snowie , Friday, March 26, 2010 1:52 AM
A corporation shall be deemed to be a subsidiary of another corporation if
1. that other corporation
(a) controls the composition of the board of directors of the first-mentioned corporation;
(b) controls more than half of the voting power of the first-mentioned corporation;or
(c) holds more than half of the issued share capital of the first-mentioned corporation.
2.the first0mentioned corporation is a subsidiary of any corporation which is that other corporation's subsidiary. (under section 5, Companies Act 1965)
A parent (holding) and its subsidiary company are two separate legal entities. For example, Genting Berhad (holding) v. Genting Plantations Berhad and Genting Singapore PLC (Genting Singapore.
Genting Plantations Berhad (subsidiary)
http://www.gentingplantations.com/aboutus/background.htm
Genting Singapore PLC (Genting Singapore)
http://www.gentingsingapore.com/profile.htm
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