http://www.legislation.gov.uk/ukpga/1989/40/section/21/enactedCompanies Act 1989Standards and specificationsKing's Printer of Acts of Parliament2021-08-02 Part I 21 1 The following section is inserted in Part VII of the Companies Act 1985— 258 1 The expressions “parent undertaking” and “subsidiary undertaking” in this Part shall be construed as follows; and a “parent company” means a parent undertaking which is a company. 2 An undertaking is a parent undertaking in relation to another undertaking, a subsidiary undertaking, if— a it holds a majority of the voting rights in the undertaking, or b it is a member of the undertaking and has the right to appoint or remove a majority of its board of directors, or c it has the right to exercise a dominant influence over the undertaking— i by virtue of provisions contained in the undertaking’s memorandum or articles, or ii by virtue of a control contract, or d it is a member of the undertaking and controls alone, pursuant to an agreement with other shareholders or members, a majority of the voting rights in the undertaking. 3 For the purposes of subsection (2) an undertaking shall be treated as a member of another undertaking— a if any of its subsidiary undertakings is a member of that undertaking, or b if any shares in that other undertaking are held by a person acting on behalf of the undertaking or any of its subsidiary undertakings. 4 An undertaking is also a parent undertaking in relation to another undertaking, a subsidiary undertaking, if it has a participating interest in the undertaking and— a it actually exercises a dominant influence over it, or b it and the subsidiary undertaking are managed on a unified basis. 5 A parent undertaking shall be treated as the parent undertaking of undertakings in relation to which any of its subsidiary undertakings are, or are to be treated as, parent undertakings; and references to its subsidiary undertakings shall be construed accordingly. 6 Schedule 10A contains provisions explaining expressions used in this section and otherwise supplementing this section. . 2 Schedule 9 to this Act (parent and subsidiary undertakings: supplementary provisions) is inserted after Schedule 10 to the Companies Act 1985, as Schedule 10A. 1985 c. 6. 1985 c. 6.