Holding subsidiary relationship
This query is : Resolved
Yash saxena
(Querist)
28 March 2012
I am confused whether there can be following circumstance or not:
A Ltd holding 51% shares in B Ltd. AND
B Ltd holding 51% shares in A Ltd.
So What kind of relationship prevail in such circumstance?
And What are consequences of applicability of AS 21 if both are listed companies?
A Ltd holding 51% shares in B Ltd. AND
B Ltd holding 51% shares in A Ltd.
So What kind of relationship prevail in such circumstance?
And What are consequences of applicability of AS 21 if both are listed companies?
CA Nikhil Jhanwar
(Expert)
28 March 2012
Now this type of holding i.e. inter company holding is not allowed......So this transaction will not exist practically unless one company already holds in another company before commencement of Companies Act,1956
Ajay Mishra
(Expert)
28 March 2012
Hi
As per section 42 (1) of the Companies Act, 1956 a subsidiary can not become member of irs holding company.
Regards
As per section 42 (1) of the Companies Act, 1956 a subsidiary can not become member of irs holding company.
Regards
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