Companies Act, 1956

Section - 4 - Meaning of holding company and subsidiary

Meaning of "holding company" and "subsidiary".

4.   (1) For the purposes of this Act, a company shall, subject to the provisions of sub-section (3), be deemed to be a subsidiary of another if, but only if,—

         (a)  that other controls the composition of its Board of directors; or

         (b)  [that other—

      (i)  where the first-mentioned company is an existing company in respect of which the holders of preference shares issued before the commencement of this Act have the same voting rights in all respects as the holders of equity shares, exercises or controls more than half of the total voting power of such company;

     (ii)  where the first-mentioned company is any other company, holds more than half in nominal value of its equity share capital; or]

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