Holding subsidiary relation on basis of same direcctors.
This query is : Resolved
21 November 2014
One of the reason for Holding Subsidiary relation between two companies is by controlling the composition of Board of Directors. My Question is whether this condition is present in the case presented below :
ABC Pvt Ltd is a company established in 2000 of which 40 % shares are held by Ram & 60 % by Mohan. Now in the year 2013 they incorporate a new company XYZ Ltd of which 40 % shares are held by Ram , 40 % by Mohan & 20 % by Shyam. Can a holding subsidiary relation happen between the two companies based on this ?
ABC Pvt Ltd is a company established in 2000 of which 40 % shares are held by Ram & 60 % by Mohan. Now in the year 2013 they incorporate a new company XYZ Ltd of which 40 % shares are held by Ram , 40 % by Mohan & 20 % by Shyam. Can a holding subsidiary relation happen between the two companies based on this ?
21 November 2014
Of course YES.It is very much present in the case cited above.
Message likes :
1 times
22 November 2014
But Sir in the case the "Company" ABC Ltd is not having any control on the composition of board of directors of XYZ Ltd.It is just that its Directors are having majority ownership right.So can we mix ownership power of directors as the controlling power of the company (which is having separate legal existence from its members) ?.
Correct if i am wrong in the view provided above.
Correct if i am wrong in the view provided above.
22 November 2014
What you are saying is correct so far as day to day functioning is concerned. But the ultimate equation is in favour of these 2 who have the right to control. Your views please.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR 2 Short Term gain & Long term gain
- Reporting Income under Section 44ADA
- Itr 1 processing
- Off Market debit and credit transaction
- Showing Gift from relative in ITR for this year
- Share accounting-->fifo - capital gain - period as per fifo?
- ITR selection for salaries and capital gain less than L
- Short Term Capital gain on shares bought and sold after 2018 onwards
- ITR 1: Details for showing Exempt Income
- ITR returnFY25-26
- ITR validation error - Balance sheet is not filled
- Gst invoice numbering and delivery challan numbering
- Sales amount in Gstr1
- E Commerce GSTR1 & 3B how to file
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
- Form10BD was uploaded successfully without any Error but after 24 hours, Form10BE are not available
- Annexure B utility for GST Refund
- Tax amount diff in Gstr1 and 3B in tax compare reports
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
