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HOLDING - SUBSIDIARY

Khan Ibrahim (TAX CONSULTANT) (92 Points)

11 November 2010

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

PLZ DISCUSS IN DETAIL....

THANKS FOR YOUR REPLY...

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12 Replies

CA Lokesh Pokharna (CA (Ahmedabad Bhilwara Chittorgarh)) (4128 Points)
Replied 11 November 2010

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

MOHIT MAHAJAN (LCS, ACA) (2050 Points)
Replied 11 November 2010

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.

1 Like

chirag (Article & C.A Final Student) (42 Points)
Replied 11 November 2010

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.

CA CS Himanshu Khandelwal (SAP FICO Consultant) (705 Points)
Replied 12 November 2010

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.

Prasanth Nair V (ACA,ACS,CWA Final,Mcom) (557 Points)
Replied 12 November 2010

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

1 Like

2231S (Company Secretary) (53 Points)
Replied 12 November 2010

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

ravi chetani (CA Final) (46 Points)
Replied 12 November 2010

i agree with prasanta.......

Azim Khan ACA,CS,CMA*,LLB* (Proprietor) (1312 Points)
Replied 12 November 2010

agreed with Lokesh and prasanth...

Manoj Khandelwal (Practice) (347 Points)
Replied 12 November 2010

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.

C.A. LINESH PATIL (CA) (910 Points)
Replied 12 November 2010

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.

Khan Ibrahim (TAX CONSULTANT) (92 Points)
Replied 13 November 2010

THANKS FOR YOU ALL GUYS

Vinay Raja (student-IPCC) (704 Points)
Replied 30 November 2010

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