Companies. [Ch. 31. No. 1.

415

 

and their report shall be annexed to the balance sheet in
lieu of the statement.

125. (1) Where the assets of a company consist in whole
ear in part of shares in another company, whether held
directly or through a nominee and whether that other
company is a company within the meaning of this Ordinance
or not, and—

(a) the amount of the shares so held is at the time
when the accounts of the holding company are made up
more than fifty per cent. of the issued share capital
of that other company or such as to entitle the company
to more than fifty per cent. of the voting power in that
other company; or

(b) the company has power (not being power vested
in it by virtue only of the provisions of a debenture
trust deed or by virtue of shares issued to it for the
purpose in pursuance of those provisions) directly or
indirectly to appoint the majority of the directors of
that other company,

that other company shall be deemed to be a subsidiary
company within the meaning of this Ordinance, and the
expression “‘ subsidiary company ”’ in this Ordinance means
a company in the case of which the conditions of this section
are satisfied.

(2) Where a company the ordinary business of which
includes the lending of money holds shares in another
company as security only, no account shall for the purpose
of determining under this section whether that other
company is a subsidiary company be taken of the shares so
held.

126. (1) The accounts which in pursuance of this Ordi-
nance are to be laid before every company in general
meeting shall, subject to the provisions of this section,
.contain particulars showing—

(a) the amount of any loans which during the period
to which the accounts relate have been made either by
the company or by any other person under a guarantee
from or on a security provided by the company to any

Meaning of
subsidiary
company.

Accounts
to contain
particulars
as to loans
to, and
remunera-
tion of,
directors,
etc.