Section 83:

83. Subsidiary may not hold shares in holding company (1) Subject to this section, a subsidiary shall not hold shares in its holding company. (2) An issue of shares by a holding company to its subsidiary shall be void. (3) A transfer of shares from a holding company to its subsidiary shall be void. [Issue 1] C35 – 60 Revised Laws of Mauritius (4) Where a company that holds shares in another company becomes a subsidiary of that other company— (a) the company may, notwithstanding subsection (1), continue to hold those shares; but (b) the exercise of any voting rights attaching to those shares shall be of no effect. (5) Nothing in this section shall prevent a subsidiary holding shares in its holding company in its capacity as a personal representative or a trustee unless the holding company or another subsidiary has a beneficial interest under the trust other than an interest that arises by way of security for the purposes of a transaction made in the ordinary course of the business of lending money. (6) This section applies to a nominee for a subsidiary in the same way as it applies to the subsidiary. Sub-Part H – Statement of Shareholders Rights