Question - corporate law

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Querist : Anonymous

Querist : Anonymous (Querist)

20 April 2012 It is necessary for a company to hold more than half of the nominal value of the quity share capital of another company to be called its holding compant ? Is Yes than why ?

Ajay Mishra

Ajay Mishra (Expert)
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20 April 2012 Hi

Yes, for becoming holding company, the company should have more than 50% of the voting right of an other company (Subsidiary Company.

This will apply only on company and not on individual. For example: if Mr. A is holding more than 50% shares of Company X, then it can not be said that Mr. A is holding of Co. X.

Regards

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