Section 9: Establishment of subsidiary companies.

(1) The Board shall have power to set up subsidiaries in partnership with local and international companies towards meeting the materiel needs of the armed forces and other security agencies through wholesale ownership or acquiring equities in enterprises with relevant products.
(2) Where the Corporation has controlling shares and is the core investor, the subsidiary shall be responsible to the Corporation.
(3) Where the Corporation does not hold the controlling share in a subsidiary, the subsidiary shall be independent of the Corporation, provided that it continues to operate in accordance with the provisions of the law and generates return on investment to the Corporation.
(4) The subsidiaries shall have-
(a) a board consisting of a representative of the Corporation as member; and
(b) an executive management team in the subsidiaries taking charge of the business.