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INDUSTRIAL AND PROVIDENT SOCIETIES ACT (NORTHERN IRELAND) 1969 - SECT 47

Meaning of ""subsidiary''.

47.(1) For the purposes of this Act, a company shall, subject to the
provisions of subsection (4), be deemed to be a subsidiary of a
registered society if, but only if, that society either

(a)is a member of the company and controls the composition of its
board of directors; or

(b)holds at least half in nominal value of the company's equity share capital.

(2) For the purposes of subsection (1)(a), the composition of a company's
board of directors shall be deemed to be controlled by a registered society
if, but only if, that society by the exercise of some power exercisable by it
without the consent or concurrence of any other person can appoint or remove
the holders of all or a majority of the directorships.

(3) A society shall be deemed for the purposes of subsection (2) to have power
to appoint to a directorship if either

(a)a person cannot be appointed thereto without the exercise in his favour by
that society of such a power as is mentioned in that subsection; or

(b)a person's appointment thereto follows necessarily from his appointment as
a member of the committee of that society; or

(c)the directorship is held by that society itself.

(4) In determining whether a company is a subsidiary of a registered society

(a)any shares held or power exercisable by that society in a fiduciary
capacity shall be treated as not held or exercisable by it;

(b)subject to paragraphs (c) and (d), any shares held or power exercisable by
any person as a nominee for that society (except where that society is
concerned only in a fiduciary capacity) shall be treated as held or
exercisable by that society;

(c)any shares held or power exercisable by any person by virtue of the
provisions of any debentures of the company or of a trust deed for securing
any issue of such debentures shall be disregarded; and

(d)any shares held or power exercisable by, or by a nominee for, that society
(not being held or exercisable as mentioned in paragraph (c)) shall be treated
as not held or exercisable by that society if the ordinary business of that
society includes the lending of money and the shares are held or power is
exercisable as mentioned above by way of security only for the purposes of a
transaction entered into in the ordinary course of that business.

(5) For the purposes of this Act, a registered society shall be deemed to be a
subsidiary of another such society if, but only if, that other society either

(a)is a member of the first mentioned society and controls the composition of
its committee; or

(b)can exercise at least half of the votes to which members of the
first-mentioned society are entitled under its rules.

(6) For the purposes of subsection (5)(a), the composition of a society's
committee shall be deemed to be controlled by another society if, but only if,
either

(a)that other society by the exercise of some power exercisable by it without
the consent or concurrence of any other person can appoint and remove the
members or a majority of the members of that committee; or

(b)that other society is itself a member of that committee and by the exercise
of such a power as is mentioned in paragraph (a) can either appoint and remove
the remaining members of that committee or appoint and remove such number of
members of that committee as, together with itself, would constitute a
majority of the members of that committee.

(7) A society shall be deemed for the purposes of subsection (6) to have power
to appoint a person to membership of the committee of another society if
either

(a)he cannot be appointed without the excercise in his favour by the
first-mentioned society of such a power as is mentioned in paragraph (a) of
that subsection; or

(b)his appointment follows necessarily from his appointment as a member of the
committee of the first-mentioned society.

(8) Subsection (4) shall apply with the necessary modifications in determining
whether a registered society is a subsidiary of another such society as it
applies in determining whether a company is a subsidiary of such a society.

(9) In this section "company" includes any body corporate other than a
registered society, and "equity share capital" means, in relation to a
company, its issued share capital excluding any part thereof which, neither as
respects dividends nor as respects capital, carries any right to participate
beyond a specified amount in a distribution.

© 1969 Crown Copyright

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