Section 4:

4. Meaning of “subsidiary” – matters to be disregarded In determining whether a company is a subsidiary of another company— (a) shares held or a power exercisable by that other company only as a trustee are not to be treated as held or exercisable by it; (b) subject to paragraphs (c) and (d), shares held or a power exercisable— (i) by a person as a nominee for that other company, except where that other company is concerned only as a trustee; or (ii) by, or by a nominee for, a subsidiary of that other company, not being a subsidiary which is concerned only as a trustee, are to be treated as held or exercisable by that other company; (c) shares held or a power exercisable by a person under the provisions of debentures of the company or of an agency deed for securing an issue of debentures shall be disregarded; (d) shares held or a power exercisable by, or by a nominee for, that other company or its subsidiary, not being held or exercisable in the manner described in paragraph (c), shall not be treated as held or exercisable by that other company where— (i) the ordinary business of that other company or its subsidiary, as the case may be, includes the lending of money; and (ii) the shares are held or the power is exercisable by way of security only for the purposes of a transaction entered into in the ordinary course of that business.