Article 34 - Definition of a Group

(1) For the purposes of these Regulations, QFC Entities shall be deemed to be members of a Group if one QFC Entity is a 75% Subsidiary of the other or both are 75% Subsidiaries of a third Company or an LLP.
(2) Subject to Article 34(3), a Company is a 75% Subsidiary of another Company or an LLP if and so long as not less than 75% of its Ordinary Share Capital is owned directly or indirectly by that other Company or LLP.
(3) A Company shall not be treated as a 75% Subsidiary of another Company or LLP unless that Company or LLP is—
(a) beneficially entitled to not less than 75% of any profits available for Distribution to equity holders of the subsidiary Company; and
(b) beneficially entitled to not less than 75% of any assets of the subsidiary Company available to its equity holders on a winding up.
(4) In determining whether one Company is a 75% Subsidiary of another Company or LLP, the other Company or LLP shall be treated as not being the owner of any Ordinary Share Capital which it owns directly in the first mentioned Company if the shares are held with the sole or main intention of deriving a profit from their resale.
(5) An LLP is a 75% Subsidiary of another Company or LLP (5) if and so long as—
(a) not less than 75% of the assets of the LLP; and
(b) not less than 75% of the income earning rights in the LLP,
are beneficially owned by that other Company or LLP.
(6) An LLP shall not be treated as a 75% Subsidiary of another Company or LLP unless that Company or LLP is—
(a) beneficially entitled to not less than 75% of any profits available for Distribution to holders of an LLP interest, as applicable, in the subsidiary LLP; and
(b) beneficially entitled to not less than 75% of any assets of the subsidiary LLP available to holders of an LLP interest, as applicable, in the subsidiary LLP on a winding up.
Amended (as from 18th June 2014)