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Cross holding in pvt. ltd. companies
Goodmorning everyone.. Yesterday I came across balance sheets of two pvt ltd. companies, they were holding 99.7% shares of each other [ A company holding 99.7% shares of company B, B company holding 99.7% shares of company A], is it valid ? Please explain the benefits of doing the same...
Replies (5)
Hi Yash,
Such a thing is not possible at all.... However there are certain exceptions.
Pls go through clause 19 of the new Companies Act, 2013. The same has come into effect w.e.f 12/09/2013.
Hopefully your query is resolved...If not then revert here...
Regards
Thanks for the information Vandana jii...........
a subsidiary co can hold shares in holding co before it becomes subsidiary whether under old or new Act. In your case it is not possible for both cos to be holding and subsidiary of each other at the same time.
Thank you so much everyone for your help.. much appreciated
sir, could you help me with the provisions where it is written that subsidiary company can hold shares in holding company . i have a similar case for one client
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