(1) Subject to subsection (4), a holding company is exempt from the requirement to prepare group financial statements if that holding company (the "lower holding company") is itself a subsidiary undertaking and its holding undertaking is established under the laws of an EEA state and one or other of the following cases applies.
(2) Those cases are -
(a) the lower holding company is a wholly owned subsidiary of that other holding undertaking,
(aa) that other holding undertaking holds more than 90 per cent of the shares in the lower holding company and the remaining shareholders in, or members of, the lower holding company have approved the exemption,
(b) that other holding undertaking holds more than 50 per cent but not more than 90 per cent of the shares in the lower holding company and notice requesting the preparation of group financial statements has not been served on the lower holding company by shareholders holding in aggregate -
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