Which of the following is NOT one of the tests contained in s 46 of the Corporations Act to determine whether a company is a subsidiary of another company?

Question

Quizplus · Accepted Answer

The tests to determine whether a company is a subsidiary of another are contained in s 46 of the Corporations Act. Only one of the tests needs to be met.
1. The holding company controls the composition of the board of directors; that is, it has the power to appoint or remove directors of the subsidiary company.
2. The holding company controls more than 50 per cent of the votes of the subsidiary company.
3. The holding company holds more than 50 per cent of the issued shares of the subsidiary company.
4. The company is a subsidiary of a subsidiary of the holding company.

Which of the Following Is NOT One of the Tests