OpenLegislation

Section 42 Groups of companies.F1

England and Wales

(1)

For the purposes of this section two bodies corporate shall be taken to be members of a group if and only if one is a subsidiary of the other or both are subsidiaries of a third body corporateF2or the same person has a controlling interest in both.

  • F3 ... ... ...

(2)

Where a tenancy is held by a member of a group, occupation by another member of the group, and the carrying on of a business by another member of the group, shall be treated for the purposes of section 23 of this Act as equivalent to occupation or the carrying on of a business by the member of the group holding the tenancy; and in relation to a tenancy to which this Part of this Act applies by virtue of the foregoing provisions of this subsection—

(a)

references (however expressed) in this Part of this Act and in the Ninth Schedule to this Act to the business of or to use occupation or enjoyment by the tenant shall be construed as including references to the business of or to use occupation or enjoyment by the said other member;

(b)

the reference in paragraph (d) of subsection (1) of section 34 of this Act to the tenant shall be construed as including the said other member; and

(c)

an assignment of the tenancy from one member of the group to another shall not be treated as a change in the person of the tenant.

(3)

Where the landlord’s interest is held by a member of a group—

(a)

the reference in paragraph (g) of subsection (1) of section 30 of this Act to intended occupation by the landlord for the purposes of a business to be carried on by him shall be construed as including intended occupation by any member of the group for the purposes of a business to be carried on by that member; and

(b)

the reference in subsection (2) of that section to the purchase or creation of any interest shall be construed as a reference to a purchase from or creation by a person other than a member of the group.

Annotations

Textual amendments

F1

S. 42 substituted by virtue of Law of Property Act 1969 (c. 59), s. 15, Sch. 1

F2

Words in s. 42(1) added (1.6.2004) by Regulatory Reform (Business Tenancies) (England and Wales) Order 2003 (S.I. 2003/3096), arts. 1(3), 16

F3

Words in s. 42(1) repealed (1.6.2004) by Regulatory Reform (Business Tenancies) (England and Wales) Order 2003 (S.I. 2003/3096), art. 1(3), Sch. 6

Notes on Part II

Modifications

C1

Pt. 2 restricted by 1983 No. 1, s. 56(2G)(b) (as inserted (1.1.2007) by Pastoral (Amendment) Measure 2006 (No. 2), ss. 1(b), 2(2); 2006 No. 3, Instrument made by Archbishops)

C2

Pt. 2 excluded (20.3.2015) by Criminal Justice and Courts Act 2015 (c. 2), s. 95(1), Sch. 10 para. 3(1)(a); S.I. 2015/778, art. 2(1)(d)

C3

Pt. 2 excluded (15.3.2018) by City of London Corporation (Open Spaces) Act 2018 (c. i), s. 6(7) (with ss. 3, 4(2))

C4

Pt. 2 excluded (coming into force in accordance with s. 13 of the amending Act) by Monken Hadley Common Act 2022 (c. ii), s. 9(5) (with s. 8(3))

C5

Pt. 2 excluded (24.11.2025) by General Cemetery Act 2025 (c. ii), ss. 1(2), 11(2) (with s. 11(3))

C6

Pt. 2 modified (30.7.2026) by The Product Security and Telecommunications Infrastructure Act 2022 (Conferral of Tribunal Jurisdiction under the Landlord and Tenant Act 1954 etc.) Regulations 2026 (S.I. 2026/569), regs. 1(2), 3 (with reg. 4)

C7

Pt. 2 amended by Opencast Coal Act 1958 (c. 69), s. 37, Sch. 7 paras. 10, 20; excluded by Leasehold Reform Act 1967 (c. 88), s. 16(1)(c)(d) and Rent Act 1977 (c. 42), s. 24(2), Sch. 1 paras. 8, 9

C8

Pt. 2 (ss. 23–46) excluded (prosp.) by Transport Act 1982 (c. 49, SIF 107:1), ss. 14(1), 76(2)

C9

Pt. 2 (ss. 23–46) excluded by Dockyard Services Act 1986 (c. 52, SIF 58), s. 3(2)

C10

Pt. 2 (ss. 23–46) excluded by Housing Act 1988 (c. 50, SIF 61), s. 101(2)

C11

Pt. 2 (ss. 23–46) restricted by City of London (Spitalfields Market) Act 1990 (c. ix), s. 5(4)

C12

Pt. 2 (ss. 23-46) excluded by Atomic Weapons Establishment Act 1991 (c. 46, SIF 8), ss. 3(1), 6(2), Sch. para. 3

Pt. 2 (ss. 23-46) excluded (1.11.1993) by 1993 c. 28, s. 59(2)(b)(ii); S.I. 1993/2134, art. 5

Pt. 2 (ss. 23-46) excluded: (1.4.1994) by 1993 c. 43, s. 31(1) and S.I. 1994/571, art. 5; (3.11.1994) by 1994 c. 33, s. 7(3)(a); (3.11.1994) by 1991 c. 53, s. 84 (as substituted (3.11.1994) by 1994 c. 33, s. 96); (1.10.1996) by 1996 c. 46, s. 30(7)(11) and S.I. 1996/2474, art. 2

Pt. 2 (ss. 23-46) excluded (1.8.2000) by 1999 c. 33, s. 149(3)(a); S.I. 2000/1985, art. 2, Sch.