Section 765 | General rule: a company and its 75% subsidiaries form a group

(1)The general rule is that—

(a)a company (“A”) and all its 75% subsidiaries form a group, and

(b)if any of those subsidiaries have 75% subsidiaries, the group includes them and their 75% subsidiaries, and so on.

(2)A is referred to in this Chapter and in Chapter 9 as the principal company of the group.

(3)Subsections (1) and (2) are subject to the following provisions of this Chapter.