Can a Private Company be the holding company ?

 

Dear Sir/ Madam,

The doubts placed below are some of the practical issues that I came across...  Please clarify..

A) Can a Private Company be the holding company of a Public Company ?

B) If yes to the above answer, is it possible for a Public Company to have two share holders (actual      requirement being 7)... i.e. one private company which holds more than half of the nominal value of the  share capital and the another company holding the remaining half...??

 

Kindly Clarify

Replies (7)

answer to the first question : yes a  pvt ltd company can be holding company of public company by holding its majority of shares......no doubt no restriction in law any  where

 

2nd answer: no in no case a public company be formed with 2 member it need 7 member minimum individual or company any one (sec 3 (1) (2) )

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(a) Any private company can be the Holding as well as subsidiary of any Public or private company.

 

(b) No, it is not possible. In case of public company there must be 7 shareholders.

If you want to create such private company, holding of a public company even in that case seven shareholders are required.

Originally posted by : vikash rathi

answer to the first question : yes a  pvt ltd company can be holding company of public company by holding its majority of shares......no doubt no restriction in law any  where

 2nd answer: no in no case a public company be formed with 2 member it need 7 member minimum individual or company any one (sec 3 (1) (2) )

 

 Totally Agree

Our learned members are absolutely right.

First of all, YES a private company can be holding company of a public company.

As we know that public company is required to have at least 7 members. therefore that public company is also no exception. however in these cases almost all the share capital is held by Private company except 6 shares which are beneficially allotted in favour of its directors' relatives or any other key person.

CAN ANY OF U GIVE ME AN INSTANCES WERE A PUBLIC COMPANY IS A HOLDING COMPANY OF PRIVATE COMPANY...

 

 

PLZ.............

 

Can any one pls inform compliances and issues, if pvt ltd co. is holding of Pubcli Ltd co. by holding morethan 75 % of preference share capital. in line with new co. act 2013. particuarly both are group companies.

 

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
13 November 2026
Accountant

New Mobile India

Muzaffarpur

B.Com

View Details
Company
13 November 2026
Charted Accountant - Fresher

Neeraj Bhagat & Co

New Delhi

CA Final

View Details
Company
ARTICLESHIP 23 October 2026
CA Articleship / Article Assistant

M N Rao & Associates LLP

Vijayawada

CA Inter

View Details
Company
ARTICLESHIP 25 October 2026
Article Intern (CA Articleship)

Arpan Bohra & Co

Hyderabad

CA Inter

View Details
Company
10 November 2026
Direct Tax Manager

CAAQ CONSULTANCY PVT LTD

New Delhi

CA Final

View Details
Company
19 October 2026
Accountants/Articles (Freshers/Experienced)

ADY & CO.

New Delhi

Graduate (Any)

View Details
Company
Featured 07 November 2026
Chartered Accountant

DPV & Associates

Chennai

CA

View Details
Company
30 October 2026
Asst Manager Accounts

Goodwin Pumps India Pvt Ltd

Chengalpattu

CA Inter

View Details