Sir/Madam,
In two different private companies, same members are major shareholders of both the companies. Whether they are associate company or Susidiary company?
Dharani Sukumar (Articled Assitant) (36 Points)
02 July 2015Sir/Madam,
In two different private companies, same members are major shareholders of both the companies. Whether they are associate company or Susidiary company?
Gargi Ranade
(CS)
(410 Points)
Replied 03 July 2015
Dear sir,
According to me you are reffering to the status of the Group companies , they can not be trated as associate but they are related parties as mentioned in the section 2 (76) (viii)
transaction bettwen such companies are removed from the purview of section 188 on 5th June's exemption notification.
regatds,
Gargi
ACS Anjali Jain
(SERVICE - CS)
(472 Points)
Replied 03 July 2015
they are neither associate co nor subsidiary co. they may be treated as related party.
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