member and AS 21
This query is : Resolved
10 December 2008
As per companies act, there sholud be at least 2 and 7 members for private and public co respectively. But why some companies are called as 100% subsidiary, which practically does not happen.
CS Vivek Hegde
(Expert)
10 December 2008
Dear Kaushal
ur doubt is 100% right. But usually we consider 99% as 100% right? Morever in order to fulfill legal provisions the holding company will nominate somebody as member by giving him 1 share.
So practically it goes like this. It dont think it makes any diffnc if we say 100% instead of 99.99%
rgds
Vivek
ur doubt is 100% right. But usually we consider 99% as 100% right? Morever in order to fulfill legal provisions the holding company will nominate somebody as member by giving him 1 share.
So practically it goes like this. It dont think it makes any diffnc if we say 100% instead of 99.99%
rgds
Vivek
10 December 2008
As per companies act, there sholud be at least 2 and 7 members for private and public co respectively. But why some companies are called as 100% subsidiary, which practically does not happen.
S Kedarnath
(Expert)
11 December 2008
One hunderd percent subsidiary means a holding company holding the entire share capital of its subsidiary. Since it is necessary that atleast two members are required to form a private company and seven members for a public company, the holding company may nominate someone for holding share on their behalf to form a company as such.
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