26 July 2017
Dear All,
Is it possible that the shareholding of Company X (which is a private limited company) is held by Company Y and Mr. A (who is a Director in Company Y).
Example - Company X has 10,00,000 shares. Company Y holds 9,99,999 shares and Mr. A holds 1 share only.
Is such a situation possoble?
If anyone is aware about any applicable provisions, please reply.
A prompt reply shall be appreciated.
26 July 2017
It is done to satisfy the requirement of minimum number of members (i.e.) 2 (Two) in case of a private limited company and 7 (Seven) in case of an unlisted public limited company & To incorporate or to have a wholly owned subsidiary.
CAclubindia
