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Associate & Holding Co.

Vipul Acharya (Account Officer) (639 Points)

13 September 2019

A Partnership & Pvt Ltd Co. in which same Husband & wife are directors
will this be called associate or holding company

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4 Replies

Chirag (Professional) (1979 Points)
Replied 14 September 2019

Related Party as per Sec. 2(76)

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rekhu patel (12 Points)
Replied 14 September 2019

Holding and associate company is decided on the basis of share holdings in such company

2 Like

Vipul Acharya (Account Officer) (639 Points)
Replied 15 September 2019

Same Directors with 100% holdings at both entities

Chirag (Professional) (1979 Points)
Replied 19 September 2019

Director's holding in any other entity will make such Entity as Related Party As Per Section 2(76) of Companies Act, 2013 and also as per Accounting Standards on Related Party Transaction, To Make another company as an associate or holding then shares/voting rights to be held by Company itself in its own name...For Holding Company If such Company/any body corporate helds more than 50% in another company and for associate holds more than 20%of voting rights in another company which is Called "Significant Influence ", Even though you'll find Defintion of Holding company includes wider term that ,Board of directors are accustomed to act according to directions /advice here intention connotes about "Holding company per se"and not any director....For More clarifications I'll suggest you to read Guidance note issued by ICSI on Related party transaction as updated by March 2019 and relevant sections of companies act including any modifications and re-enactement thereto....