Holding subsidary

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

07 February 2012 X ltd Consists of 2 Directors holding 189000 and 14000 shares. total share capital of x ltd is 268000 shares.
y ltd consists of 2 directors holding 8000 and 2000 shares. total shares of y ltd is 38500.x ltd holds 18500 shares of y ltd.
(x & y ltd hav directors in common)

can there be a holding subsidary relationship? if yes which company is the holding company?

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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07 February 2012 There is no holding and subsidary relation exists. If any company holds more than 50% of the another company then the former company called as holding company and the later company called as subsidary company.For example X ltd holds more than 50% of the shares of Y ltd then x ltd called as holding company and the Y ltd called as subisdary company to X ltd. In your case X ltd consists 18500 share in Y ltd i.e 48% of the total shares of the Y ltd i.e doesn't exceeds the 50% of the shares holding by X ltd so holding and subsidary relation ship doesn't exists.
OM SAI SRI SAI JAI JAI SAI

Querist : Anonymous

Querist : Anonymous (Querist)

08 February 2012 Directors are in common.
will directors effect holding and subsidiary relationship????

Querist : Anonymous

Querist : Anonymous (Querist)

08 February 2012 Directors are in common.
will directors effect holding and subsidiary relationship????

Dintakurthi Tirumala

Dintakurthi Tirumala (Expert)
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08 February 2012 Directors are not effects the holding and subidary relation ship even though the share holding ration of X ltd in Y ltd is not more than 50% of the share capital of Y ltd if the control of the Y ltd is in the hands of X ltd then holding and subsidery relation ship exists.
OM SAI SRI SAI JAI JAI SAI

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