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Section 136: Prohibition on subsidiary being a member of its holding company

Companies Act 2006 · 2006 c. 46View on legislation.gov.uk

Part 8: A company's members — Chapter 4: Prohibition on subsidiary being member of its holding company

Except as provided by this Chapter—

a body corporate cannot be a member of a company that is its holding company, and
any allotment or transfer of shares in a company to its subsidiary is void.

The exceptions are provided for in—

  • section 138 (subsidiary acting as personal representative or trustee), and

  • section 141 (subsidiary acting as authorised dealer in securities).

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This legislation text comes from legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. These source and reuse terms cover the legislation text, not Remedy's commentary.

Reuse reviewed 21 August 2026 under Open Government Licence v3.0.