29.
| (1) Except in the cases hereafter in this section set out, a body corporate cannot be a member of a company which is its holding company, and any allotment or transfer of shares in a company to its subsidiary shall be void. |
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| (2) The provisions of this section shall not apply where the subsidiary is concerned as legal representative, or where it is concerned as trustee, unless the holding company or a subsidiary thereof is beneficially interested under the trust and is not so interested only by way of security for the purposes of a transaction entered into by it in the ordinary course of a business which includes the lending of money. |
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| (3) The provisions of this section shall not prevent a subsidiary which is, on the appointed date, a member of its holding company, from continuing to be such member but, subject to the provisions of subsection (2), the subsidiary shall have no right to vote at meetings of the holding company or any class of members thereof. |
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| (4) Subject to the provisions of subsection (2), the provisions of subsections (1) and (3) shall apply in relation to a nominee for a body corporate which is a subsidiary as if any reference in subsections (1) and (3) to a body corporate included a reference to a nominee for a body corporate. |
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| (5) Any reference in this section to shares, in relation to a company limited by guarantee or unlimited which is a holding company whether or not it has a share capital, shall be construed as including a reference to the interest of its members as such, whatever the form of the interest. |
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Sri Lanka Consolidated Acts