Barclays 2009 Annual Report Download - page 258

256 Barclays PLC Annual Report 2009 www.barclays.com/annualreport09
Notes to the accounts
For the year ended 31st December 2009
continued
41 Investment in subsidiaries continued
Entities where the Group’s interest exceeds 50% which are excluded from consolidation
Although the Group’s interest in the equity voting rights in certain entities exceeds 50%, or it may have the power to appoint a majority of their Boards
of Directors, they are excluded from consolidation because the Group either cannot direct the financial and operating policies of these entities, or on
the grounds that another entity has a superior economic interest in them. Consequently, these entities are not deemed to be controlled by Barclays.
The table below includes information in relation to such entities as required by the Companies Act 2006 Section 410(2)(b).
Equity Retained
Percentage of share- loss
ordinary share holders’ for the
Country of registration capital held funds year
or incorporation Name %£m£m
UK Fitzroy Finance Limited 100 – –
Cayman Islands Palomino Limited 100 1 –
42 Related party transactions and Directors’ remuneration
a) Related party transactions
Parties are considered to be related if one party has the ability to control the other party or exercise significant influence over the other party in making
financial or operation decisions, or one other party controls both. The definition includes subsidiaries, associates, joint ventures and the Group’s pension
schemes, as well as other persons.
Subsidiaries
Transactions between Barclays PLC and subsidiaries also meet the definition of related party transactions. Where these are eliminated on consolidation,
they are not disclosed in the Group financial statements. Transactions between Barclays PLC and its subsidiary, Barclays Bank PLC are fully disclosed in
its balance sheet and income statement. A list of the Group’s principal subsidiaries is shown in Note 41.
Associates, joint ventures and other entities
The Group provides banking services to its associates, joint ventures, the Group pension funds (principally the UK Retirement Fund) and to entities under
common directorships, providing loans, overdrafts, interest and non-interest bearing deposits and current accounts to these entities as well as other
services. Group companies also provide investment management and custodian services to the Group pension schemes. The Group also provides banking
services for unit trusts and investment funds managed by Group companies and are not individually material. All of these transactions are conducted on the
same terms as third-party transactions.
Entities under common directorships
The Group enters into normal commercial relationships with entities for which members of the Group’s Board also serve as Directors. The amounts included in
the Group’s financial statements relating to such entities that are not publicly listed are shown in the table opposite under Entities under common directorships.