Formation of wholly owned subsidiary company
Querist : Anonymous
What are the minimum requirements of directors and share capital for subsidiary company?
Who all can subscribe to the share capital of that pvt subsidiary company?
Additional requirement for forming subsidiary are:
1.Board Resolution of company making investment in new company.
2. Board Resolution for authorisation to some one who will subscribe shares in the name of new company.
3. Name, address, occupation and father name of the representative of the investing company.
A company being an artificial and legal person may be a subscriber to the Memorandum and Articles of Association. In order to subscribe for the Memorandum and Articles of Association, the Board of directors of the company shall by resolution under section 292(1)(d) authorise a person as its attorney to sign the various documents for and on behalf of the company. The Board shall also authorise for execution of a Power of Attorney in favour of the said person. Since it is required for every subscriber having a share capital to take at least one share, therefore it should be mentioned in the resolution of the Board that how many shares the company proposes to take. Provisions of section 372A shall also be considered.
Querist : Anonymous
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