Holding and subsidiary company

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Hi

Kindly help me  in understanding the  foll  Concept.

1) how can a company becomes Holding and Subsidiary company by voting rights??.company is having equity and preference shares .both.

 pls help.

Regards

Joshi

 

 

Replies (5)

Hi u can refer the mentioned link as it is clearly mentioned and very nicely explained

/articles/holding-company-subsidiary-company-the-companies-act-1956-13954.asp

Originally posted by : Ms.Joshi

Hi

Kindly help me  in understanding the  foll  Concept.

1) how can a company becomes Holding and Subsidiary company by voting rights??.company is having equity and preference shares .both.

 pls help.

Regards

Joshi

 
Refer clause 32 of sebi and AS 21
 

Hi

Thanks forum and aviral for yr prompt reply.

in my case it is private company and further wants to know if there no pref.shares are involved , how to find the relationship of Holding -subsidiary through voting right.

pl.suggest

regds

joshi

A holding company is a corporation that is organized for the purpose of owning stock in other corporations. A company may become a holding company by acquiring enough voting stock in another company to exercise control of its operations, or by forming a new corporation and retaining all or part of the new corporation's stock. While owning more than 50 percent of the voting stock of another company ensures control, in many cases it is possible to exercise control of another company by owning as little as ten percent of its stock. I think so it must just have Equity shares i m not sure about it.I u want u can refer https://www.enotes.com/holding-companies-reference/holding-companies and https://220.227.161.86/19330sm_finalnew_cp5.pdf

Hi

Thanks forum

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