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