24 November 2011
THE MINIMUM NO. OF MEMBERS IN A PRIVATE LTD. CO. IS 2 BUT IF A COMPANY IS HAVING 100% OF SHAREHOLDING IN ANOTHER CO. THAN IT IS VALID? WHY?
24 November 2011
Section 45 of the Companies Act, 1956 states that there shall be atleast 2 members incase of Private limited Company.IF the Company constinues to carry on business with fewer than 2 member, the members shall be severally liable for tha payment of whole debts and can be sued.
So A company cannot hold 100% shares in the company.
Secondly, there is also a violation of Section 174 of the Companies Act, 1956, which says that quoram for a General meeting should be 2 and 7 for private Company and public Company as the case may be.
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