Chapter 3

Question 1

What is the definition of a group companies

Answer 1

1- Either the company directly or indirectly controls the other.
2- Either company is a subsidiary of the other.

Question 2

What are the legal consequences of groups for companies

Answer 2

1- Acquisition of shares.
2- Directors conduct.
3- Public offerings.
4-Disposal of greater part of assets.
5-Financial assistance:purchase of shares.
6- Financial assistance: company loans

Question 3

What is a holding company

Answer 3

A holding company means a company that controls the subsidiary as set out innsec3(1)(a)

Question 4

What is the definition of a subsidiary company

Answer 4

1- Its a company that is able to directly or indirectly apply exercise or control the exercise of a majority of the general voting rights associated with securities of the company.
2- Has the right to appoint or control the appointment of a director of a company