What concequences are there in Companies Act 2013 if one company is associated of other company (holding more than 20% shares).
What is to be done in order to reduce the share percentage?
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Associates of other company
Replies (3)
Consequences: Associate will be related party u/s 2(76) and you will have to prepare consolidated financial statements u/s 129(3).
Action required to reduce holding: You have to transfer shares in normal manner (Board resolution + share transfer Form SH.4 etc.)
Thank You Sir for your reply.
I further want to know what is the time period for share tranfer so that my holding reduce to less than 20% and no consolidated B/S need to be prepare.
You should transfer shares before the end of the current financial year.
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