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Holding company and Subsidiary (Others)

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This query is : Resolved


( Author )
05 November 2007

I want to ask what is the difference between holding and subsidiary company and what is the procedures to form such companies


KAAPIL

( Expert )
05 November 2007

Holding Company and Subsidiary Company are explained in AS 21 and Companies Act Sec. 212.
Holding Company is holding company of the other if:
(a) Holds more than half the nominal value of shares
(b) Controls composition of majority of the directors of the other
(c) Voting of 20%

e.g. If reliance can appoint in X Limited 7 out of 12 directors

OR

e.g. Holds 51% shares

OR

Reliance owns voting power in X Limited 24%.


Ravikumar.G

( Expert )
06 November 2007

Mr.Ankur please read out sec 4 of the companies act, 1956. There are lot of details are there with example. And also deemed public company concept will arise.


KAAPIL

( Expert )
07 November 2007

If you want hard copy I will courier you on the address.


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