The AOA of private company requires to be mention three restrictive clause (i.e. members upto 200, prohibition on inviting the public to subscribe its securities & restriction on transibility of its shares to outsiders)
so my doubt is this if the private company is prohibited to invite public to subscribe its share and also restrict to transfer its shares to outsiders then 'How any private company can become a subsidiary of any public company'?
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provision related to privated companies
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A public can set up a private Ltd company in which he is holding majority of shares then such pvt company shall become subsidiary of public company ,otherwise through private placement ,share can also be allotted to public company ,Restriction on transferability is only for existing shareholders ...
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