Plss answer its urgent

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can xltd be holding co of any other co with out holding prescribed shares ?? explain ??

Replies (2)

Yes, there are other two reasons:

1. The directors of the BOD of X ltd. are also directors in other co. and having control over the    management of the other co.(Control Over BOD/Management of other Co.)

2. If X ltd. is a holding co. of Say A ltd. and A ltd. has Bltd as its Subsidiary, then Xltd will also be a holding Co. of B Ltd. even do not directly holding any Shares.(Chain Holding) 

If you read the holding company definition its clear that any company controling 51% or more share capital or controling majority board of directors of another company. 


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