Save Rs 588 on a 2-Year Ad-Free CAclubindia Pro Membership. Subscribe Now!

holding & subsdiry Co

Save Share

Join Us Follow Us Add as Source

This query is : Resolved

Report Follow Query Ask a Query

Querist : Anonymous

Querist : Anonymous (Querist)

14 August 2010 what is Holding Co. & alsosubsdiary Co. if possible kindly give the example, what r the difference between them

Jagruti (CS)

Jagruti (CS) (Expert)
Follow

14 August 2010 As per Sec 4 of the Companies Act:

A is said to be Holding of another if
1. it holds more than 50 % of nominal value of equity share capital of other Co.

Thus if A ltd holds 51% of equity share capital of B ltd than A lts is said to be Holding Co. of B.

2. it controls the composition of the Board of Directors of the other Company.

Or if without the approval of A ltd. none of directors in B ltd can be appointed than A is holding of B

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