Section 296 | The control and independence requirement

(1)The control element of the requirement is that—

(a)the relevant company must not control (whether on its own or together with any person connected with it) any company which is not a qualifying subsidiary of the relevant company, and

(b)no arrangements must be in existence by virtue of which the relevant company could fail to meet paragraph (a).

(2)The independence element of the requirement is that—

(a)the relevant company must not be under the control of another company (or of another company and any other person connected with that other company), and

(b)no arrangements must be in existence by virtue of which the relevant company could fail to meet paragraph (a).

(3)This section is subject to section 327(7) (exchange of shares).