Important provisions- pvt co. subsidiary to public co.

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Querist : Anonymous

Querist : Anonymous (Querist)

06 July 2013 Dear Members,

Please guide regarding the important provisions or sections under the Companies Act, 1956 applicable to the Private company which is the subsidiary of the public company.

What are the consequences of non compliance of such provisions

Thanks

Ajay Mishra

Ajay Mishra (Expert)
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06 July 2013 Hi

Go to the following link, it may help you:

https://www.caclubindia.com/experts/private-company-which-is-a-subsidiary-of-a-public-company--891870.asp

Querist : Anonymous

Querist : Anonymous (Querist)

09 July 2013 Thanks Ajay ji,

Have gone through it and now have some clarity.
Can you guide regarding the position of the subsidiary companies (Pvt Ltd) of that subsidiary, whose holding company is a Limited company.

Thanks

Ajay Mishra

Ajay Mishra (Expert)
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09 July 2013 Hi

If a private company becomes subsidiary of public company (holding company)then some provision of the Companies Act, 1956, become applicable as applicable on public limited company or its holding company.

After become subsidiary, there will be no changes in constitution of members or director of the company. Only 2 shareholders and directors will be required.

The MOA & AOA will be same.

Querist : Anonymous

Querist : Anonymous (Querist)

09 July 2013 Thanks Ajay ji,

But my point was different. If A is a subsidiary co. of a public limited co., and B and C are subsidiary companies (Pvt Ltd) of this company A (Subsidiary of a public company), what will be the position of the company B and C.
Whether it will be similar to A where some provisions of the public limited company will be applicable on them or otherwise.

Thanks.

Ajay Mishra

Ajay Mishra (Expert)
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09 July 2013 No, it will be not deemed as public company, because the definition of public company as given in section 3(1)(iv) not consider B and C as deemed public company.

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