Dear All,
Kindly share your views on the following issue:
Facts of the case: A is a listed public limited Company. B is a listed public limited co which is also an associate company of A. A holds 47% stake in the equity capital of B.
There are 7 directors on the Board of B. Out of these 3 directors are employee of A and the MD of B is an ex employee of A. However, his appointment was also recommended indirectly by A.
There is no provision in the AOA of B regarding nominee director by A.
Query:
With reference to clause (a) & (b) of subsection 2 of Section 4, can we say that there is deemed control on the Board of B by A and thus B becomes the subsidiary Co.
Kindly help!
Regards
Pravin Satardekar
CAclubindia
