LIVE GST Audit Course by CA Sachin Jain. Register Now!!

Public Companies

Prejith (Pursuing CA) (92 Points)

05 June 2010

According to sec 3 (1)(iv)(c): A company which is a private company is a subsidiary of a company which is not a private company is a Public Company.

Now my doubt is that, such companies as mentioned above have to comply with all the sections which are applicable to a Public Company ?

Reply
Follow
Share

13 Replies

Rashmi (Company Secretary) (49 Points)
Replied 05 June 2010

Yes. You are right. Private Company which is subsidiary of Public Company have to comply with all the requirements of Public Company.

1 Like

vivek (CS) (751 Points)
Replied 05 June 2010

Erstwhile we were using the term Deemeed Public Company, thy are supposed to follow all requirements of public company.

1 Like

Prejith (Pursuing CA) (92 Points)
Replied 05 June 2010

Then in that case if the private company is incorporated with a paid up capital of Rs. 1,00,000/-, is there a requirement of raising it to Rs 5Lakhs or more and should it conduct a statutory meeting ?

SIVASIVA (FCA, Future CA) (4935 Points)
Replied 05 June 2010

I don't think soPrejith

1 Like

vivek (CS) (751 Points)
Replied 05 June 2010

It will have to maintain the status as per Sec 3(1)(iii) in addition to that it will have to comply the requirement in the lines of public comp. wherever mentioned.

1 Like

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 06 June 2010

NO.

Very humbly disagree with Rashmi.

A private copany which is subsidiary of a public company need not to follow all the provisions which are applicable to a public company. For example section-81 right issue which is not applicable to a private company.

To decide whether a section is applicable to such private company please check this clause in the section:

A public company and a private company which is subsidiary of a public company......

Check sections---268, 269, 259 etc....Use of this clause means applicability of this section on such private company...

Normally section 269 is not applicable to a private company but if private company is subsidiary of a public company than by virtue of this clause section 269 becomes applicable to such private company.

Thanks

1 Like

(Guest)

agree with mr. ankur

1 Like

varun gupta (Senior Accounts Officer) (89 Points)
Replied 06 June 2010

Ankur Garg will confused you, u should go with rashmi as she correctly says u have to comply with all public limited companies provisions except where specifically exempted by section for compliance.

1 Like

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 07 June 2010

Originally posted by : varun gupta
	Ankur Garg will confused you, u should go with rashmi as she correctly says u have to comply with all public limited companies provisions except where specifically exempted by section for compliance.