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

Jayashree S Iyer

Jayashree S Iyer (Expert)
Follow

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.

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