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Group company: how would you define this term?

Query relating to assignment of a lease to a "Group Company", definition of "Group Company" under s.42 Landlord and Tenant Act 1954.

This query relates to the above, and more specifically the definition of "Group Company" according to the Landlord and Tenant Act 1954 Section 42.

A common term in a business lease permits a Company to assign the lease to anyone who is a group company according to the above section. However, under the wording of that section, the scope of a group company only extends to an immediate parent and not a company further up the chain, i.e an ultimate holding company.

If the company wanted to assign the lease to a company in their group who wasn't "either side" of them, under this wording it would not be possible.

Is there a more generous definition of "group company" contained in a plc precedent or elsewhere that would permit a company at the bottom of a chain to assign to any group company anywhere in the chain or vice versa.

Anonymous (Private practice)

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