Dear All,
Whether a holding company issue shares to its subsidairy and vice-versa whether subsidairy company issue same amount of sahres to its holding as well. It can be treated as a barter deal where the total amount is same however, the no. of sares and the share premium price is so fixed to keep the ultimate price the same.
Whether the same is allowed under Companies Act or any other applicable law?????
Holding company cannot issue shares to subsidiary company. Not allowed under comanies. If the subsidiary already had shares in holding company, before holding-subsidiary relation, then no issues.
agree with sunny,,,,,,,
| Originally posted by : LOVE ARORA | ||
 |
agree with sunny,,,,,,, |
 |
Thanks for posting guys but give it a thought first before answering the question. I too am a professional and I am asking this after going through n no. of provisions.
Hope to get a correct answer
CAclubindia
