(1) For the purposes of this Part, a company is a subsidiary of a registered society if -

(a) the society is a member of the company and controls the composition of its board of directors, or

(b) the society holds more than half in nominal value of the company'sequity share capital.

(2) For this purpose, a society is regarded as controlling the composition of a company's board of directors if the society, by exercising a power exercisable by it without the consent or concurrence of any other person, can appoint or remove the holders of all or a majority of the directorships.

(3) For the purposes of subsection (2), a society is treated as having power to appoint to a directorship if -

(a) a person can be appointed to it only if the society exercises a power of a kind mentioned in that subsection in favour of the person,

(b) a person's appointment to it follows necessarily from the person's appointment as a member of the society's committee, or

(c) the directorship is held by the society.