Private Limited Company - Shareholder

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

28 February 2011 Can an existing Private Limited Company have only one Individual as its Share Holder ?

In other words : Can an individual hold 100% shares in a private limited company ?

Jayashree S Iyer

Jayashree S Iyer (Expert)
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01 March 2011 A private company needs to have a minimum of 2 members. Hence an individual cannot hold 100% shares in a private limited company. Atleast 1 share must be held by another person.

Querist : Anonymous

Querist : Anonymous (Querist)

01 March 2011 In that case, can another Pvt Ltd / Public Ltd - hold 100% shares of a pvt. ltd. firm ?

udit sharma

udit sharma (Expert)
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01 March 2011 Agreed with the Expert - a Private Limited Company is required to have atleast two or more shareholders. Even if a Private Limited Company acquires 100% shareholding of other private Company shares have to be registered in the name of the acquirer Private Company and its nominee to meet the requirements of section 12 of the Companies Act, 1956. Since the Beneficial Interest in the shares held by the nominee of the Private Company vests witht the Private Company you will also have to comply with the provisions of section 187C of the Companies Act, 1956 read with Companies ( Declaration of Beneficial Interest) Rules

God Bless

CS Udit Sharma

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Jayashree S Iyer

Jayashree S Iyer (Expert)
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01 March 2011 Even where a private / public limited company holds 100% shares, one share has to be issued to another person / company (nominee of the company who holds 100% shares) who can hold that 1 share for the beneficial interest of the private / public limited company.

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