Do the Unlisted Public Companies (Preferential Allotment) Rules apply to a Private Limited Company which is a subsidiary of a Public Company?
Sneha
(Company Secretary)
(1594 Points)
Replied 18 March 2013
According to my perception, not applicable. The said notification says, the Central Government hereby makes the following rules to amend the Unlisted Public Companies (Preferential Allotment) rules.
It does not include the terms and Private Companies which is subsidiary of Public Company. The sections which applies to these Private Companies which is a subsidiary of Public Companies includes this term.
Sameer
( )
(50 Points)
Replied 20 March 2013
I appreciate your view Snehaji, but as per section 3 (iv) of Companies Act, a Private Ltd. Company which is a subsidiary of a Public Company comes under the defiition of a Public Company. So, by virtue of Sec 3 (iv) the preferential allotment rules should be applicable to a Private Company which is a subsidiary of a Public Company. Please correct me if I am wrong.
CAclubindia
