In Relation to the Decision in Industrial Equity Ltd V

Multiple Choice

In relation to the decision in Industrial Equity Ltd v Blackburn [1977] HCA 59 which of the following statements is NOT correct?

A) Holding and subsidiary companies have separate legal obligations.
B) A holding company must pay tax on the dividends of a subsidiary.
C) A holding company can pay a dividend out of a subsidiary company's profits.
D) A holding company is a separate legal entity from a subsidiary.