Company law.

Save Share

This query is : Resolved

vinod parmar (Querist)

06 March 2014 There is one public company (A)having minimum 7 members.

Another public Company (B) wants aquire 100% shares of company(A) and form company (A) as a wholly owned subsidiary company of it.

Now All 7 members will no longer member of company (A) and there will be only one member Company (B).

So what will be the status of public company (A) as it requires minimum 7 members to be continue as public company?

Is this possible?

Nikhil Kaushik

Nikhil Kaushik (Expert)

07 March 2014 please note that subsidiary of a public company is also considered a public company.

Nikhil Kaushik

Nikhil Kaushik (Expert)

07 March 2014 refer section 43A of the companies act 1956

vinod parmar

vinod parmar (Querist)

07 March 2014 Thank u very much Nikhil Sir for considering the query..

Actually i got one solution that holding company A ltd will give the 6 shares to other 6 persons as its nominee.

And in MOA of the WOS company along with Holding company name of remaining 6 persons will be entered as nominee and holding company will be the beneficial owner.

for this nominee will file declaration U/S 187c(1)
and HC will file declaration u/s 187c(2)

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now