Sec 2 (6) of the companies act, 2013 - associate company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2016 Dear Experts,
Can any body please clarify the following

Sec 2 (6) of the Companies Act, 2013 - Associate Company
" in relation to another company, means a company in which that other company has a significant influence.

significant influence = control of at least 20% of total share capital.

Question: if the other company does not hold any shares in this Company but directors of other company are holding more than 20% of total share capital of this Company. Then, can these two companies are associate?

Regards
Rajesh Kumar Yadav
Company Secretary

Pratik Shah

Pratik Shah (Expert)
Follow

03 March 2016 No..it can not be called as Associate Company.

Definition clearly says 'a company in which the OTHER COMPANY has significant influence.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2016 Thank you Mr. Pratik.

You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now

Similar Resolved Queries

Unanswered Queries

Popular
Recent

Trending Online Classes

Direct Tax Laws & International Taxation May 26,Sept 26 & Jan 27

CA Arvind Tuli

Enroll Now
Audit Fast Track Recorded Batch For May 26,Sept 26 & Jan 27

CA Aarti Lahoti

Enroll Now
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English

CA Bhanwar Borana & CA Shubham Keswani

Enroll Now

view all classess

Meet our CAclubindia PRO Members

THUSHAR MURALI KRISHNA

ACCFIN SOLUTIONS

Vishal Kapadiya

Sagar Khakhiwala

JAYDEEP MITRA

Subscribe Now

Sec 2 (6) of the companies act, 2013 - associate company

Similar Resolved Queries

Trending Online Classes

Meet our CAclubindia PRO Members

Quick Links

Browse by Category

Latest Job Openings

Manager- Finance and Compliance

Accountant

CA Final

GST CONSULTANT

Senior Executive

GST CONSULTANCY