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COMPANIES ACT (NORTHERN IRELAND) 1960 - SECT 27

Membership of holding company.

27.(1) Except in the cases hereafter in this section mentioned, a body
corporate cannot be a member of a company which is its holding company, and
any allotment or transfer of shares in a company to its subsidiary shall be
void.

(2) Nothing in this section shall apply where the subsidiary is concerned as
personal representative, or where it is concerned as trustee, unless the
holding company or a subsidiary thereof is beneficially interested under the
trust and is not so interested only by way of security for the purposes of a
transaction entered into by it in the ordinary course of a business which
includes the lending of money.

(3) This section shall not prevent a subsidiary which is, at the commencement
of this Act, a member of its holding company, from continuing to be a member
but, subject to sub-section (2), the subsidiary shall have no right to vote at
meetings of the holding company or any class of members thereof.

(4) Subject to sub-section (2), sub-sections (1) and (3) shall apply in
relation to a nominee for a body corporate which is a subsidiary, as if
references in sub-sections (1) and (3) to such a body corporate included
references to a nominee for it.

(5) In relation to a company limited by guarantee or unlimited which is a
holding company, the reference in this section to shares, whether or not it
has a share capital, shall be construed as including a reference to the
interest of its members as such, whatever the form of that interest.

Meaning of "private company".

© 1960 Crown Copyright

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