MENU

Section 109 of The Companies Act No. 17 of 2015: Subsidiary acting as executor, administrator or trustee

    

(1) The prohibition in section 108(1)(a) does not apply if the subsidiary is acting
only in the capacity of—
(a) executor or administrator; or
(b) trustee unless the subsidiary's holding company or any of its other
subsidiaries is beneficially interested under the trust.
(2) For the purpose of ascertaining whether the holding company or a subsidiary
is beneficially interested under a trust, the following are to be disregarded:
(a) an interest held only as security for the purposes of a transaction
entered into by the holding company or subsidiary in the ordinary
course of business that includes the lending of money;
(b) an interest under section 110;
(c) an interest under section 111;
(d) rights that the company or subsidiary has in its capacity as trustee,
including—
(i) a right to recover its expenses or to be remunerated out of the
trust property; and
(ii) a right to be indemnified out of the trust property for a liability
incurred because of an act or omission in the performance of
its duties as trustee.

« Previous:   Section 108 - Prohibition on subsidiary being a member of its holding company          Next: »   Section 110 - Interest to be disregarded: residual interest under pension scheme or employees’ share scheme

Disclaimer: This document is not to be taken as legal advise.

Enhance Your Research with Bookmarks and Annotations

Here's how you can use these features:

  • To bookmark this page, click the "Bookmark this Page" button below the document title.
  • To add an annotation, highlight text in the document and select "Add Annotation" from the toolbar that appears.
  • These features are great for organizing your research and keeping track of key information.
  • You can view and manage your bookmarks and annotations on your Bookmarks and Annotations page.

Cited By:

More Sections