close x


Deemed Public Company


If A Limited Company has a subsidiary B Pvt Ltd and B Pvt Ltd has a subsidiary C Pvt Ltd....then does that C pvt Ltd become a deemed public limited Comapny under section 3(iv)(c) of the Act?

If yes, then does it have to obtain a certificate of Commencement of business and what are the forms required to be filed for the same.

 
Reply   
 
Company Secretary and Compliance Officer

 

Hi…
 
You have completely misunderstood section 3(iv)(c).
 
C ltd may be a subsidiary company of A ltd by virtue of section 4(1)(c).
 
Further by virtue of Section 43A(11) the concept of deemed public limited Company is no more in force.
 
 
Regards

 
Reply   
 



Sir, I want to ask further that will the Concept of Statutory Meeting be applicable to the same as Bhandari says that this concept is applicable to every private Company which is a subsidiary of a public limited company.

Then is it given only for direct subsidiary or even for indirect subsidiaries.

 
Reply   
 
Company Secretary and Compliance Officer

 

The concept of Statutory Meeting is applicable to all the private companies which are subsidiary of Public company by virtue of section 4(1)(c). In your language it is also applicable to indirect subsidiaries.
 
 
I would suggest you one thing. Stop using the word direct subsidiary and indirect subsidiaries because legally an indirect subsidiary is 100% a normal subsidiary. This suggestion is just to improve your Secretarial Practice and nothing else. Excuse me if you disagree with my views.
 
 

Best Regards  


Total thanks : 1 times

 
Reply   
 
Chartered Accountant


Totally  agree with Ankit

 
Reply   
 

If a pvt ltd company is a subsidiary of a public company, can it affix "PVT LTD" to its name ? Any return to be filed with ROC ? Can it have 2 directors, shareholders and a capital of 1 lakh ?

 
Reply   
 
Company Secretary


Dear Friend

 

Ad per Department Clarification, the provision of section 149 and 165 of the Companies Act, 1956 relating to Certificate of Commencement of Business and the Statutory Meeting would not be applicable to a private company which has converted itself in to Public Company. (Department’s File No. 44/50-CLIV/62)

 

 

Regards

CS Ajay Mishra

 
Reply   
 

Originally posted by : kunal

If a pvt ltd company is a subsidiary of a public company, can it affix "PVT LTD" to its name ? Any return to be filed with ROC ? Can it have 2 directors, shareholders and a capital of 1 lakh ?

 Sir,

A private company which a subsidiary of a public company does not cease to be a ‘private company’ because of Secion 3(1)(iv)(c), unlike a private company which has been converted into a public company under Section 44 of the Companies Act. Section 44(1) of the Companies Act provide that if a private company alters its articles of association in such a manner that they no longer include such provisions which constituted it to be a private company then it shall as on date of such alteration to the articles of association, cease to be a private company. However, no such provision has been made for a company falling under Section 3(1)(iv)(c) of the Companies Act. 
 
Upto my understanding, you should write your name as it was incorporated (suppose ABC Pvt. Ltd.), no need to increase minimum number of  DIrectors or paid up capital because of said provision.
 
 
Regards,
 
Others views solicited.

 
Reply   
 

Friends,

Check section 3 in Companies Act on MCA website http://mca.gov.in/Ministry/actsbills/pdf/Companies_Act_1956_Part_1.pdf. There is no section 3(1)(iv)(c) at all !!!  There is only 3(1)(iv) and it says "public company" means a company which is not a private company. Is this not supposed to be the latest being on MCA website?

 
Reply   
 

As per the provisions of Companies Act, 1956 a private limited company which is a subsidiary of a public company is deemed to be a public company, so is the criteria of minimum 7 members as in for a public company applicable to  that subsidiary company which is a private company ? plese guide me on this query......

 
Reply   
 

LEAVE A REPLY



    

Your are not logged in . Please login to post replies

Click here to login   Click here to Register



 



Share on :