Re: query relating to 187c & shareholders

SANTOSH SHAH (Company Secretary) (754 Points)

23 July 2013  

Dear Members

This Query is pertaining to Section 187 C, and reference to Section 45 ( on reduction of legal  Minimum Number of members less than 2 ). If number of members reduces less than 2, then its a violation of companies act 1956, where company cannot run with a Single Member.

In this context, your views required for the following

XYZ Private Limited, a Holding Company holding 999998 Shares ( Total -10,00,000 Shares) in ABC Pvt Limited.

XYZ  pvt ltd are beneficial owners, and Mr. D & Mr. E are given 1 Share each to hold as Nominees on behalf of  XYZ Pvt Ltd in ABC Pvt Ltd.

Also Mr. D & E are directors of ABC Pvt Ltd.

Though the number of members as per Statutory register will be 3, reference to interpretation of provisions of companies act 1956  , will this be considered as Single Shareholding of XYZ Pvt Ltd ?? as Mr.D & Mr.E are nominees of XYZ Company.

Please clarify on the same.


Santosh Shah