Private Company Subsidiary of Public Company

what are the sections applicable to public company but are not applicable to its private subsidiary company.

Is private company subsidiary of public company treated at par with public company?

wether provisions of private company or public company are applicable to pvt co subsidiaryof public company?

Provisions not applicable to private companies whether subsidiaries of public companies of public compnies or not

Section 70-Prohibhition of allotment before Registration of statement of Statement in lieu of prospects with RoC, Section 81- manner in which subscibed shares can be increased for Issue of further shares, Section 149- Restriction on commencement of business, Section 165- statutory meeting and statutory report, Section 219-right of a member to copies of Balance sheet and Auditors report.  Section 266- consent and qualification shares for directors and Section 284- removal directors holding directorship for life prior to 1952

A private company if subsidary of public limited company is a public company  and all provisions of companies act 1956 as applicable to public company becomes applicable to it i.e no privilages will be available to it which would have been availble to it if it was a private company .

A private company subsidary of public company  may continue to have the restriction of sec 3(1)ii in its articles . There is no need to delete the word private limited uless the company desire so.

1.your company needs to with all the provisions applicable to public Companies under Companies Act,1956

2.there is no need to delete the private word from the name

and yes there is a need t increase the directors to 3 and members to 7.

 A Private which is  a subsidiary of a Public Company  is treated as a Publicd Company, as provided in Sectioni.  3 ( 1) (iV) of Companies Act , 1956.  I DONOT  SEE as to why it  should increase  the number of its Director /Shareholders.

There are three types of Companies:

1.Private pure and simple

2. Public not private

3. Private but Public

The third type of Companies will have all the restrictions which are applicable to  both Private Companies and public Companies. Previleges not available.

Now I have the following Questions.

1. A Ltd  &  B Pvt Ltd( does not have holding Companies) holds 50% share each in C Pvt Ltd. Is C  Private or Public?.

2.Whether is it possible to adopt a structure by which  a public Company have a Private Subsidiary(without being deemed as public)?. 

All the restriction

can any body provide me draft auditors certificate to the effect that their appointment if made shall be in accordance with the limit mentioned under Section 224(1B).

Thanks in advance

please clarify

after receiving share application money

1. what is th period for allotment of shares in case of private companies?

2. is share application money has to be deposit in a schedule bank till the allotment in case of private company?

Can anybody please respond to this query ASAP. Thanks in advane.

If an auditor gives a wrong certificate under section 224(1B) i.e. he falsely states that the number of audit is within specified limits and the company obtains such a certificate.. Later on if it is found out that the auditor has given a false certificate.. will there be any actionaagainst the company?

Department may sent showcause notice to the Company but the Company can successfully defend itself if  the appointment is made in good faith on the basis of the certificate issued by the Auditor.

how can a pvt. co. be subcidiary of public co.?

Two private limited company, and its board of directors are same. In this situation, it will be treated as subsidiary? what are the basics to treat as subsidiary?

Dear Vasuki

If two private limited company and its board are same, in this situation both companies are treated as seperate legal entity and it can not be treated as subsidiary.

For being a subsidiary of another company, it must cover under section 4 of the Companies Act, 1956.

Regards