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Investments to be held in the name

Vijayamahantesh V. Khannur (Company Secretary) (91 Points)

13 December 2010

I have a query:

Can a listed public company hold its investments in one of its subsidiary, in the name of another subsidiary?

X is a indian listed company, Y is US subsidiary and Z is Australian subsidiary.

X invests in share capital of Y - Can this investment be held in the name of Z??

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7 Replies

Syam kamal (Company Secretary) (156 Points)
Replied 13 December 2010

Not possible…….. Investments made by the companies are to be held in its own name vide Section 49 read with Section 372A and 192A of the Companies Act, 1956 except that company can hold shares in a subsidiary in the name of a nominee to ensure that number of members is not reduced below the statutory minimum, i.e 2 in case of private companies and 7 in case of public companies.

Jayashree S Iyer (Company Secretary) (3224 Points)
Replied 13 December 2010

I agree with Shyam. Well said!

Jaideep (Service) (1368 Points)
Replied 13 December 2010

Very well explained by Shyam...

sivaram (Asst Mgr-Taxation) (6918 Points)
Replied 13 December 2010

Originally posted by : Syam kamal
	Not possible…….. Investments made by the companies are to be held in its own name vide Section 49 read with Section 372A and 192A of the Companies Act, 1956 except that company can hold shares in a subsidiary in the name of a nominee to ensure that number of members is not reduced below the statutory minimum, i.e 2 in case of private companies and 7 in case of public companies.