Query on section 4(7) of companies act

Dear All,

I have a query on the applicability of section 4(7) of companies act under the following circumstances:

A private limited company in india is aquired by a company incporporated in mauritius (not a listed company). The mauritius company  holds more than 85% of equity share capital in the indian company.

Further the mauritius company is the wholly owned subsidiary company of a company listed in US.

As in this case the indian private limited company is a subsidiary of a mauritius company which is not a listed company , will the indian company attract the applicability of section 4(7) of the Indian Companies Act.

Views of the learned professionals is requested.

Regards

Vikram

 

 

 

 

 

Replies (3)

In case the balance 15% share capital is held by any company incorporated outside India, the Indian company will be treated as Pvt. Ltd company. If not, the indian company will be treated as a subsidiary of a public company and hence the provisions applicable on a subsidiray of public company will be applicable on it.

Thanks Naveen.

Hi! The provisions of Section 4(7) of the Companies Act, 1956, only applies when the Maritius base company fall under the definiation of the Public Limited Company as set out under Section 3 of the Companies Act, 1956 not otherwise. I would suggest check the Articles of Association of the Maritius Base company to know the status of Indian Private Limited Company. Since the Maritus base company is wholly owned subsidiary of US base company therefore your the questioned private limited company will also become the subsidiary of the public limited company pursuant to Section 4(1)(c) of the Companies Act, 1956

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
19 September 2026
CA/Semi-CA/BCom

Pravin Sarvaiya

Mumbai

CA Inter

View Details
Company
12 October 2026
Chartered Accountant - Internal Audit

HKC | Chartered Accountants & Business Advisors

Ludhiana

CA

View Details
Company
13 October 2026
Accountant

Zerdi & Co. Chartered Accountants

Pune

B.Com

View Details
Company
ARTICLESHIP 08 October 2026
ARTICLE TRAINEE

S.B.G. & CO. CHARTERED ACCOUNTANTS

New Delhi

CA Inter

View Details
Company
26 September 2026
Chartered Accountant

pushpganga ventures

Pune

CA

View Details
Company
19 September 2026
Finance Manager

Mugdha Art Studio

Hyderabad

CA

View Details
Company
14 October 2026
GST & TDS ASSISTANT

AGGARWAL SANJAY & ASSOCIATES

New Delhi

B.Com

View Details
Company
17 September 2026
Chartered Accountant

Dass Gupta & Associates

Gurgaon

CA

View Details