Holding - subsidiary


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Querist : Anonymous

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Querist : Anonymous (Querist)
12 September 2012 Subsidiary company can hold Holding companys share - as "trustee"..anyone can answer its significance??

12 September 2012 Hi

Yes, As per Section 42(2) (b) which says:
where the subsidiary is concerned as trustee, unless the holding company or a subsidiary thereof is beneficially interested under the trust and is not so interested only by way of security for the purposes of a transaction entered into by it in the ordinary course of a business which includes the lending of money

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Querist : Anonymous

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Querist : Anonymous (Querist)
14 September 2012 Thank you for your reply...Can you please explain the meaning of 'trustee' in this context?


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