For the purposes of the Companies Act, 2013, a company is a SUBSIDIARY of another if that other company, inter alia, CONTROLS the composition of its Board, holds more than half of its total SHARE CAPITAL, or controls more than half of its total VOTING power, either itself or through its subsidiaries, save as otherwise provided. This is contained in:

Section 2(87) of the Companies Act, 2013 defines a COMPANY to be a SUBSIDIARY of another, where that other company: (i) controls the composition of its Board of Directors; (ii) exercises or controls more than half of the total VOTING power (directly or with its subsidiaries); or (iii) holds more than half of its total SHARE CAPITAL if no other shares votes, subject to the conditions. The control-based definition is broader than a mere majority shareholding and catches board-composition control. 'Control' and 'significant influence' are separate concepts. The subsidiary relationship drives the law on consolidated financial statements, disclosure and related parties.