Public Companies

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

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

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 ?

I don't think soPrejith

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.

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

agree with mr. ankur

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.

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.

Friend I am not here to confuse anyone and always believe in conceptual clarity.

I know Mr. Prejith is wise enough to understand my simple reply to his query.

Thanks

Yes Mr. Varun,

Mr. Ankur is very much right. .

Ankur Sir,

Your reply was not at all confusing instead was of great help to me. Thank you sir.

But on the lighter side.... How did you score this much sir ? That's really great.

Thanks

I want to ask that will that subsidiary pvt co. of public company be termed as deemed public company?

Dear Friends

Only rules and provisions after incorporation except Stat. Meeting u/s 165 are applicable.

Regards