Section 767 | Principal company cannot be 75% subsidiary of another company

(1)The general rule is that a company (“A”) is not the principal company of a group if it is itself a 75% subsidiary of another company (“B”).

(2)That rule is subject to subsection (3).

(3)A is the principal company of a group (“group C”) if—

(a)A and B are prevented from being members of another group by section 766,

(b)the requirements of sections 765 and 766 are met in relation to group C, and

(c)A being the principal company of group C does not enable a further company to be the principal company of a group of which A would be a member.