Hi everybody,
Thanks for your time.
I wish to know, if 7 members are required to form a company, how can a 100 percent subsidiary be formed...since 1 person would only be holding all the shares??
Thanks a lot in advance..
CA Sandeep Kumar
(Audit Assistant)
(804 Points)
Replied 13 April 2011
Practically, not 100 % shares are held by one person. There are nominees of holding companies who hold shares just to ensure the statutory minimum of 7/2 as the case may be. I request you to read section 49 of the companies act, 1956 for more clarity.
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