Subsidiary pvt Company to comply provisions of Public co.
This query is : Open
Querist : Anonymous
Querist :
Anonymous
(Querist)
11 January 2011
Hi,
Company A is holding Listed company. Company B, Public unlisted co., is subsidiary of Company A.
Company C Public unlisted co., is subsidiary of Company B.
Now, Company C has acquired 99% of shares of Company X, Private Limited.
Trust by virtue of step down subsidiary, Company X has become ultimate subsidiary of Company A, WHICH IS Public co.,
The query is
Should Company X (Pvt) now comply with the provisions of Public Company.
In such case should it increase the number of directors and members.
What other compliances need to be followed.
Pl clarify
Company A is holding Listed company. Company B, Public unlisted co., is subsidiary of Company A.
Company C Public unlisted co., is subsidiary of Company B.
Now, Company C has acquired 99% of shares of Company X, Private Limited.
Trust by virtue of step down subsidiary, Company X has become ultimate subsidiary of Company A, WHICH IS Public co.,
The query is
Should Company X (Pvt) now comply with the provisions of Public Company.
In such case should it increase the number of directors and members.
What other compliances need to be followed.
Pl clarify
11 January 2011
X is a public company as per Section 3(1)(iv) of the Companies Act, 1956 and all provisions pertaining to a public company will apply.
In addition to what is stated, it's required to have a Audit Committee as per Section 292A, need to appoint MD/WTD (if paid up capital is >5 crores) as provided in section 269, subject to managerial remuneration limits specified in Sections 198, 309, 310, Schedule XIII, etc. Many other sections viz., 300, 372A which are not applicable to a private company will apply to this company.
In addition to what is stated, it's required to have a Audit Committee as per Section 292A, need to appoint MD/WTD (if paid up capital is >5 crores) as provided in section 269, subject to managerial remuneration limits specified in Sections 198, 309, 310, Schedule XIII, etc. Many other sections viz., 300, 372A which are not applicable to a private company will apply to this company.
Message likes :
1 times
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Price inclusive or exclusive of GST while made entry in P& L Account
- TDS Challan - change of FY 2025-26 to TY 2026-27
- Gst registered proprietorship firm
- AUDITOR APPOINTMENT FOR THE YEAR ENDING MARCH 27
- Minimum tax payable to file Updated return
- Tax rate change regarding
- Non filing of I T Returns
- SALARY CAN BE CAPITALIZE
- Change Of Karta In Case of Death
- Salary from Qatar in Dollars in India
- How to Handle Active E-Invoices in GST Portal Deleted from Tally?
- IMPORT PURCHASE ENTRY PASSED IN BOOKS OF ACCOUNT
- FAST DS 26 Undisclosed Foreign Asset Disclosure Scheme 2026
- Starting trading business
- Regime change
- Goods sold but invoice not issued
- Tally: Imported bank entries do not show up in manual reconciliation
- Sales of goods of amount Rs97 lakhs to a party
- Confused About My Career After 12th — Cyber Security, AI or Finance? Need Guidance
- FAST-DS 2026 Under Tax Law - No recourse or support for person declaring via this scheme?
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
