Part 8

A company’s members
Chapter 4

Prohibition on subsidiary being member of its holding company

General prohibition

Prohibition on subsidiary being a member of its holding company
136
1
Except as provided by this Chapter—
a
a body corporate cannot be a member of a company that is its holding company, and
b
any allotment or transfer of shares in a company to its subsidiary is void.
2
The exceptions are provided for in—
- section 138 (subsidiary acting as personal representative or trustee), and
- section 141 (subsidiary acting as authorised dealer in securities).