holding company
This query is : Resolved
Guest
Guest
(Querist)
23 March 2010
if one private limited company is holding 50% shares of another private limited company then is it treatd as holding and subsidiary relationship as per company act,1956???
or stake must be more than 50% only is required??
or stake must be more than 50% only is required??
23 March 2010
The law requires control of more than half of the total voting power of such company. hence, more than 50% would be required.
However, if the company can prove that the other controls the composition of its Board, then also it would be a subsidiary.
However, if the company can prove that the other controls the composition of its Board, then also it would be a subsidiary.
CA Ashok Kumar Sahu
(Expert)
23 March 2010
agree with expert
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