Detailed Answer
Correct answer: (D)
Under s1159(1)(b) Companies Act 2006, a company is a subsidiary of another company if that company is a member of it and has the right to appoint or remove a majority of its board of directors.
Answer A is incorrect because under s1159(2) Companies Act 2006, a company can still be a wholly-owned subsidiary of another ("the holding company") even if there is more than one shareholder - as long as the other shareholders are also wholly-owned subsidiaries of the holding company. Answer B is incorrect because for a company to be a subsidiary of another, one company has to hold a majority of the voting rights of the other. Just 50% is not enough (s1159(1)(a) CA06). Answer C is incorrect - see the definition of company in s1159(4)
