Hi all,
Recently a pvt ltd company has signed a share subscripttion and sherholding agreement with the partners of a partnership firm. Since the firm cannot directly hold shares in the pvt co, it brought in other investors who in their individual cpacity have invested in the company. As per the subsidiary agreement signed b/w these outside investors and the pvt td company, it authorisese the partners of the firma to excercise all rights including voting rights on behalf of the investors in the firm.
Is this agreement valid?
CAclubindia
