Editing Subsidiary (section)

===United Kingdom===
The [[Companies Act 2006]] contains two definitions: one of "subsidiary" and the other "subsidiary undertaking".

According to s.1159 of the Act, a company is a "subsidiary" of another company, its "holding company", if that other company:
* holds a majority of the voting rights in it, or
* is a member of it and has the right to appoint or remove a majority of its board of directors, or
* is a member of it and controls alone, pursuant to an agreement with other members, a majority of the voting rights in it, or if it is a subsidiary of a company that is itself a subsidiary of that other company.

The second definition is broader. According to s.1162 of the Companies Act 2006, an undertaking is a parent undertaking in relation to another undertaking, a subsidiary undertaking, if:
* it holds a majority of the voting rights in the undertaking, or
* it is a member of the undertaking and has the right to appoint or remove a majority of its board of directors, or
* it has the right to exercise a dominant influence over the undertaking—
** by virtue of provisions contained in the undertaking's articles, or
** by virtue of a control contract, or
* 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.

An undertaking is also a parent undertaking in relation to another undertaking, a subsidiary undertaking, if:
* it has the power to exercise, or actually exercises, dominant influence or control over it, or
* it and the subsidiary undertaking are managed on a unified basis.

The broader definition of "subsidiary undertaking" is applied to the accounting provisions of the Companies Act 2006, while the definition of "subsidiary" is used for general purposes.<ref>{{cite web|url=http://www.bailii.org/uk/cases/UKSC/2011/16.html|access-date=2015-01-19|title=Farstad Supply AS v Enviroco Ltd [2011] UKSC 16, para 16|archive-date=2014-06-29|archive-url=https://web.archive.org/web/20140629193620/http://www.bailii.org/uk/cases/UKSC/2011/16.html|url-status=live}}</ref>