When looking at whether group audit exemption can be claimed or if the consolidated size exemption can be claimed, are the size thresholds in Section 280B CA 2014 to include the information (i.e. turnover, total assets, employees numbers) of a company where the holding company holds a golden share in a company which gives the ability of the company that holds the share to control the appointment and removal of directors?
Yes the company that the golden share is held in, is to be included in the thresholds in Section 280B CA 2014 when assessing whether group audit exemption or consolidation size exemption can be claimed. This is because a group relationship exists (i.e. parent subsidiary relationship). The definition of a group (in relation to the references in Section 280B CA 2014) is contained in Section 7 and 8 of CA 2014. Section 8 of CA 2014 makes it clear that a group means a holding company and its one or more subsidiaries. Section 7(2)(a)(i) of CA 2014 makes it clear that a parent subsidiary relationship exists where the a company holds a share/shares and this share gives that shareholder control over the composition of its board of directors.