UK: company not a subsidiary following share pledge

The Supreme Court handed down its judgment in Farstad Supply A/S v Enviroco Limited earlier today: see here (pdf). A press summary is available here (pdf). The Supreme Court unanimously held that where the shares in a company had been pledged, that company ceased to be a subsidiary company within the meaning of Section 736 of the Companies Act (1985) (see now Section 1159 and Schedule 6 of the Companies Act (2006)) because the company which pledged the shares ceased to be a member.