14 November 2013
Dear Experts, Company X is subsidiary of Y and it has 2 shareholders Y & Z , Z is also subsidiary of Y. Dividend paid by X goes to Y & Z which ultimately goes to the accounts of Y. Is it legally correct?
Also Z transfers all its share to Y and becomes a nominee shareholder of X.And X now has a single owner that is Y. Is any disclosure or declaration is needed for this?
15 November 2013
No generally the divided is an income of the shareholder who hold the shares of the company. It is immaterial that it is holding or subsidiary of other.
I am not concern about holding or subsidiary. My question is if shareholders of the company Y & Z has the same bank account and actually Y & Z are the same.
And if Z transfers all its shares vested in X to Y does it make any difference.
CAclubindia
