Separate legal personality prevents a holding company from claiming subsidiary assets in corporate insolvency resolution. A Holding Company is a company with one or more subsidiaries and the term 'company' includes any body corporate. Share ownership by a parent does not transfer ownership of a subsidiary's assets; on winding up those assets vest in the liquidator, and therefore subsidiary assets cannot be included as assets of the holding company in a corporate insolvency resolution plan.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Separate legal personality prevents a holding company from claiming subsidiary assets in corporate insolvency resolution.
A Holding Company is a company with one or more subsidiaries and the term "company" includes any body corporate. Share ownership by a parent does not transfer ownership of a subsidiary's assets; on winding up those assets vest in the liquidator, and therefore subsidiary assets cannot be included as assets of the holding company in a corporate insolvency resolution plan.
Full Summary is available for active users!
Note: It is a system-generated summary and is for quick reference only.