how could it be WoS(100%) ?

Others 575 views 3 replies

sonia

student

59 Points Joined January 2011

dear all

normally when we read FDI or ODI relevant provisions we do come across the provisions relating to 100% owned WoS.

it impliedly means all the share capital is held by one person. but currently under CA1956 does not allow the capital to be held by only one single person.

does it mean that capital is held by various group companies or associates who all falls within the same group or under the same management. if that is so, then the group holding company is required to maintain the register indicating the investments held on its own name?

or are there any other specific provisions applicable to that scenario?

please share your views

thank you

sonia

Replies (3)

Sudhir Garg

Service

236 Points Joined November 2008

Dear Sonia

In case as specified by you, one share is allotted to the director / or other nominated person of other member company and payment of such one share is also made by such member company so that entire capital of subsidiary is shown as investment of holding company.

Regards

Sudhir

cs ashwini kumar

Company Secretary in Practice

173 Points Joined January 2011

In order to fulfil the requirement of at least two members in respect of a private limited company and atleast Seven members in respect of a Public Company incorporated in India and in compliance of the provisions of Section 49(3) of the Companies Act, 1956 the procedure is adopted as under:(assumed that a Private Company to be incorporated with a subscribed capital of Rs. 100,000)

a) 9,999 equity shares of Rs. 10 may be subscribed by the Holding Company directorly (ofcourse some authorised representative will sign the MOA and AOA table on behalf of the Holding Company as per executed Board Resolution of such Holding Company)

b) at least 1 equity share of Rs. 10 should be subscribed by one nominee (by Six different nominees in case of Public Limited Company) of the Holding Company. (Also, after incorporation, comply with the provisions of Section 187C of the Companies Act, 1956 by filing necessary e.Form 22B alongwith Form I and II)