HOLDING - SUBSIDIARY

CAN THERE BE MORE THAN ONE HOLDING COMPANY OF A SAME SUBSIDIARY COMPANY ?

PLZ DISCUSS IN DETAIL....

THANKS FOR YOUR REPLY...

Replies (12)

YES IF TWO COMPANIES HOLDING 50% VOTING POWER/CONTROLLING POWER IN SUCH SUB. COMPNAY.........

In my opinion holding-subsy relationship is created when one co. has more than 50% voting power in other and not at exact 50, hence through this method i dont think there can be two holding of one subsy. 

However another case is when one co. has power to compose governing body of other, not sure whether through this method there can be 2 holding or not.

if A.L.T.D is a subsidiary of B.L.T.D, and B.L.T.D is a subsidiary of C L.T.D,then A.L.T.D is the subsidiary of C.L.T.D.thus A.L.T.D is a subsidiary of B L.T.D as well as C L.T.D.

As far as i know in order to have holding and subsidiary relationship hlding company need to have more than 50% of voting power or power to compose governing body. So i dont think that there can be 2 holding co for a same subsidiary co.

Yes, there can be more than one holding company for a subsidiary co.

In some cases One company may hold more then 50 percent of the capital,

and some other co may have the power to constitute the board,

In such cases both are holding by different methods as such.

if A.L.T.D is a subsidiary of B.L.T.D, and B.L.T.D is a subsidiary of C L.T.D,then A.L.T.D is the subsidiary of C.L.T.D.thus A.L.T.D is a subsidiary of B L.T.D as well as C L.T.D.

This is a case of Indirect Subsidiaries

Totally agree with Prasantha... There can be n number of Holding companies for a company....

i agree with prasanta.......

agreed with Lokesh and prasanth...

Yes, there can be more than one holding company of a subsidiary company.

For eg. If a company holds more than 50% of voting right and another company has power to compose  more than 50% of composition of governing body. In this situation there is two holding companies of a subsidiary company.

Yes,but in very rare case.one can become holding on the basis voting power while other on the basis of controlling interest.

further both will consolidate subsidiary.

Holding on the basis of voting power will be consolidated as we usually do.]

And holding company on the basis on controlling interest will 1st take full on the assets side then leave

everything on the liability side as other share holder interest.

in this case we dont use minority as those are only majority.

THANKS FOR YOU ALL GUYS

Originally posted by : Prasanth Nair V

Yes, there can be more than one holding company for a subsidiary co.

In some cases One company may hold more then 50 percent of the capital,

and some other co may have the power to constitute the board,

In such cases both are holding by different methods as such.

if A.L.T.D is a subsidiary of B.L.T.D, and B.L.T.D is a subsidiary of C L.T.D,then A.L.T.D is the subsidiary of C.L.T.D.thus A.L.T.D is a subsidiary of B L.T.D as well as C L.T.D.

This is a case of Indirect Subsidiaries

agreed

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