minimum members required in public company

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devang doshi (Querist)

28 June 2010 ‘X’ is a fully subsidiary public limited company. ‘Y’ is the holding public limited company. Than in such situation, in subsidiary company there is only one shareholder named ‘Y’. Isn’t is violation of the provision specifying that there must be seven (7) members in any public limited company?

CA Robin Betala

CA Robin Betala (Expert)

28 June 2010 Hi
Devang Dooshi
you question is quite good one i would say that, only from practical knowledge i can say that there is no violation in it as many big company have wholly owned subsidary therefore there will be no violation in it.

devang doshi

devang doshi (Querist)

28 June 2010 sir,

please give reference of the act that there is no violation. because there is possibility that it is contravercy matter & change is required company act.

kindly open the question.

thanks.

devang doshi

devang doshi (Querist)

28 June 2010 a

Ankur Garg

Ankur Garg (Expert)

28 June 2010 There is a clear cut violation in the subsidiary company.

There must be 6 other members in the subsidiary company to make it minimum 7.

Regards

devang doshi

devang doshi (Querist)

29 June 2010 sir, then there are many company in indian stock market which is fully subsidiary with only one holding company.

than stpes govt. take to clear this problem?

or what can we do to inform this situation to registrar or govt ?

Ankur Garg

Ankur Garg (Expert)

01 July 2010 No need to intimate anyone. ROC will automatically take action when such company file its annual return mentioning only 1 shareholder.

Regards

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