Cross Holding 100%
This query is : Resolved
19 June 2010
Which Co. will prepare consolidated accounts in case of cross holding?
Example - A Ltd holds 100% shares of B Ltd. B Ltd also holds 100% shares of A Ltd.
Q- Which Co will prepare Consolidated Accounts A Ltd, B Ltd or Both?
Example - A Ltd holds 100% shares of B Ltd. B Ltd also holds 100% shares of A Ltd.
Q- Which Co will prepare Consolidated Accounts A Ltd, B Ltd or Both?
19 June 2010
i think both has to prepare
21 June 2010
The above is never possible in law.
1) As per the Companies ACt, 1956, a company cannot holds its own shares. This kind of crossholding would mean that the companies are indirectly holding their own shares.
2) Assuming that one company (A) first acquired 100% shares in the other company (B). Then A becomes a holding company and B becomes the subsidiary. As per the Companies Act, a subsidiary company cannot hold voting rights in the holding company. Hence also the above is not possible.
1) As per the Companies ACt, 1956, a company cannot holds its own shares. This kind of crossholding would mean that the companies are indirectly holding their own shares.
2) Assuming that one company (A) first acquired 100% shares in the other company (B). Then A becomes a holding company and B becomes the subsidiary. As per the Companies Act, a subsidiary company cannot hold voting rights in the holding company. Hence also the above is not possible.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- About TDS & Income Tax
- Tax on Deemed Capital Gain
- Scrutiny and reopening of past returns
- F & O PROFIT REPORTING FOR AY 2026-27
- Booth for sales promotion
- Type of Capital Gain
- Regarding ITR filing with more value than showing in AIS/TIS
- ASMT-10 received from A O
- Rental income of jointly held property
- Accounting with Claude
- Difff in ais receipts and gst turnover
- ITR-3 File/Error Found
- Exiting partner in partnership firm in gst portal
- Taxability of credit in canara bank ET & T section (NRO)
- Consequences of Non-Deduction of TDS under Income Tax???????????????
- TDS on Rent received on redevelopment of building
- Indian IT Portal issue in computing tax as per UK-India DTAA
- Capital Gains on sale of residential flat
- Upload Level ValidationITR3Category of Defect B/D
- PF Taxable Income
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
