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Qualification shares
Does section 270 apply to private company if it is a subsidiary of public company?
Replies (5)
Pvt co if it is a subsidiary of public co deemed to be a public co . So sec 270 will be applicable on pvt co.
Yes section 270 will be applicable as it is deemed to be public company but before applying section 270 u have to see the articles of company if der is a provision for Qualification shares den section 270 will apply.
As per Section 3(1)(iv) of Companies Act, a private company which is subsidiary of a public company is also a Public Company.
Therefore Section 270 will apply in your case.
But remember that Section 270 does not mandate the directors to have qualification shares.
It will be applicable only if the Articles of the company require so.
If the AOA requires that directors take qualification shares then applicable otherwise not.
| Originally posted by : Saurabh garg | ||
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If the AOA requires that directors take qualification shares then applicable otherwise not. |
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