Pls advice if a pvt ltd company becomes a subsidiary of public ltd company, then is it required to increase its members to minimum of 7 & increase directors to minimum of 3? Also will it be required to increase paid up capital to Rs 5 lacs?
Ajay Aggarwal (Proprietor) (48 Points)
10 March 2012Pls advice if a pvt ltd company becomes a subsidiary of public ltd company, then is it required to increase its members to minimum of 7 & increase directors to minimum of 3? Also will it be required to increase paid up capital to Rs 5 lacs?
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 10 March 2012
Not required at all.
If a pvt ltd company becomes a subsidiary of public ltd company, then it is not required to increase its members to minimum of 7 & increase directors to minimum of 3 and increase paid up capital to Rs 5 lacs.
These are the part of basis structure of the company and will remain as it is even if becomes subsidiary of a public company.
Regards
Rajesh Bhati
(MBA Finance)
(32 Points)
Replied 10 March 2012
If a pvt. ltd company becomes subsidiary of public company, then there is no need to increase its members and directors.
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