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Holding and Subsidiary realtionship


25 October 2016 There are two companies viz A and B. All the directors of the A company is also directors in the B company except 1 director and A company holds 47 % shares of B company. So, is A company is holding company of B company ?

25 October 2016 According to section 2(6) of the Companies Act 2013, Company A is an Associate Company. as per the defination , the company is said to be the associate of other if other Company has significant influence.
Significant influence means holding more than 20% of the share capital of the Company but less than 50%. In the Above case Company A holds 47% of the Share capital in Company B. so it is an associate Company

25 October 2016 In continuation of above question, the directors of A company who aee directors in B company also hold 35 % of shareholding of B company.So now, is B company subsidiary




26 October 2016 no B is not Subsidiary Company. According to section 2(87) of the Companies Act 2013, Subsidiary Company means the Company in which holding Company controlls more than half of the total share capital either at its own or together with one or more subsidiary Companies.
The term Company includes Body Corporate

26 October 2016 I have a little bit confusion that directors of A company who are also directors In B company with 35 % shareholding in B company

26 October 2016 continuation of question, are directors have control of A company over B company because sec 2(87) said that " a company in which the holding company controls the composition of the BOD.



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