1. A Company shall be classified as a subsidiary of a holding company under any of the following conditions: a. If the holding company holds a controlling interest in the Capital of the Company and controls the composition of its board of directors; or b. If the Company is a subsidiary of a subsidiary of the holding company. 2. A subsidiary may not hold shares in its own holding company. Any allotment or transfer of any shares in a holding company to any of its subsidiaries shall be null and void. 3. If a Company that holds shares or equity stake in a holding company becomes a subsidiary of such holding company, such Company shall continue to be a shareholder in the holding company, provided that: a. The subsidiary shall no longer have voting rights at meetings of the board of directors of the holding company or at meetings of its General Assembly; and b. The subsidiary shall dispose of its shares in the holding company within 12 [twelve] months of the date of acquisition of the subsidiary by the holding company.
Interpretation and application must be checked against the official text and current version.