Section 405(3)

A subsidiary undertaking may be excluded from consolidation where— severe long-term restrictions substantially hinder the exercise of the rights of the parent company over the assets or management of that undertaking, or extremely rare circumstances mean that the information necessary for the preparation of group accounts cannot be obtained without disproportionate expense or undue delay, or the interest of the parent company is held exclusively with a view to subsequent resale.

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Source: legislation.gov.uk · retrieved 2026-09-04