INVESTMENT BY A PVT CO

Hello Members

Case : ABC Private ltd ( having paid up cap of 5 lacs ) holds the 100% shareholding of XYZ Private Ltd.Now this 100% shareholding is 5000 lacs ?

Is it possible, plz comment ? Any leal implications ? What if this XYZ is Public company, anything apart from attraction of section 372 A by XYZ ???

plz advice!

Replies (3)

Also , please specify if this ABC Company no activities. BUT it has investment in other companies greater than it s own paid up ??? Wud it come under the purview of iNvestment companies ????

ABC Pvt. Ltd. can not hold 100% shares of XYZ Ltd. coz as per the requirement of law a private company needs to have minimum 2 members.

sec 372A is not applicable where the sole objectt of the company is financing other body corporates or whose principal business is the acquisition of shares of other company.

Dear Neeta

their is a way of Wholly Owned Subsidiary.

and their is no need of 372A and ABC is also exempt u/s 372A (4).

 

Regards

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