As per section 2(87), Company X will be a subsidiary of Company Y if Company Y:

Correct answer: A) Exercises or controls more than one-half of the total voting power of Company X, either on its own or together with its subsidiaries

Explanation

Under section 2(87), a holding company either controls the composition of the board of directors of the other company, or exercises or controls more than one-half of its total voting power. This can be on its own or together with one or more of its subsidiaries. Significant influence through 20% of voting power makes a company an associate under section 2(6), not a subsidiary. Exactly one-half is not 'more than one-half'.