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subsidiary undertaking

  1. (1) (except for the purposes of determining whether a person has close links with another person) an undertaking of which another undertaking is its parent undertaking.
  2. (2) (for the purposes of determining whether a person has close links with another person) (in accordance with section 343(8) of the Act (Information given by auditor or actuary to the FSA) and paragraph 3(3) of Schedule 6 to the Act (Threshold conditions)):
    1. (a) an undertaking in (1);
    2. (b) an undertaking ("S") if:
      1. (i) another undertaking (its parent) is a member of S;
      2. (ii) a majority of S's board of directors who have held office during the financial year and during the preceding financial year have been appointed solely as a result of the exercise of the parent's voting rights; and
      3. (iii) no one else is the parent undertaking of S under any of (a) (i) to (iii) or b(i) or (ii) in the definition of parent undertaking.5
  3. (3) (in LR) as defined in section 561162 of the Companies Act 2006.5634