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
Jayashree S Iyer
(Expert)
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.
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