<P> According to s. 1159 of the Act a company is a "subsidiary" of another company, its "holding company", if that other company: </P> <Ul> <Li> holds a majority of the voting rights in it, or </Li> <Li> is a member of it and has the right to appoint or remove a majority of its board of directors, or </Li> <Li> is a member of it and controls alone, pursuant to an agreement with other members, a majority of the voting rights in it, or if it is a subsidiary of a company that is itself a subsidiary of that other company . </Li> </Ul> <Li> holds a majority of the voting rights in it, or </Li> <Li> is a member of it and has the right to appoint or remove a majority of its board of directors, or </Li>

Four methods parent companies use to obtain returns from the subsidiaries