# Companies Act 2006, Paragraph 18


(1) A person holds a share “indirectly” if the person has a majority stake in a legal entity and that entity—
(a) holds the share in question, or
(b) is part of a chain of legal entities—
(i) each of which (other than the last) has a majority stake in the entity immediately below it in the chain, and
(ii) the last of which holds the share.
(2) A person holds a right “indirectly” if the person has a majority stake in a legal entity and that entity—
(a) holds that right, or
(b) is part of a chain of legal entities—
(i) each of which (other than the last) has a majority stake in the entity immediately below it in the chain, and
(ii) the last of which holds that right.
(3) For these purposes, A has a “majority stake” in B if—
(a) A holds a majority of the voting rights in B,
(b) A is a member of B and has the right to appoint or remove a majority of the board of directors of B,
(c) A is a member of B and controls alone, pursuant to an agreement with other shareholders or members, a majority of the voting rights in B, or
(d) A has the right to exercise, or actually exercises, dominant influence or control over B.
(4) In the application of this paragraph to the right to appoint or remove a majority of the board of directors, a legal entity is to be treated as having the right to appoint a director if—
(a) a person's appointment as director follows necessarily from that person's appointment as director of the legal entity, or
(b) the directorship is held by the legal entity itself.

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Source: https://www.legislation.gov.uk/ukpga/2006/46/schedule/1A/paragraph/18 (the official version)
Page: https://openlegislation.uk/companies-act-2006/schedule-1A/paragraph-18
Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.