Procedure for investment by public co in private company

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Querist : Anonymous

Querist : Anonymous (Querist)

15 October 2012 A public limited company have invested into the share capital of a private limited company and increased its shares upto 66%.
As the holding is increased upto 66% the private company has become the subsidiary company of the public company.
So what are the implications for public company being holding company.
And can anybody help me out with the procedure to be followed for public company.

Ajay Mishra

Ajay Mishra (Expert)
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15 October 2012 Hi

When a company hold more than 50% of the share capital of other company, then such other company become subsidiary of the Company and you will follow the provisions of section 212 of the Companies Act, 1956.

Where the company required to be mentioned subsidiary details along with your company.

The private subsidiary will be treated as public company under some section of the Companies Act, 1956.

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Querist : Anonymous

Querist : Anonymous (Querist)

15 October 2012 ya but what are the implication effecting the books of public company
eg investment booksetc

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