A holding company wants to sell out 100% shares of its Wholly owned Subsidiary company which section gets attract as per Companies Act 1956
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(simple solutions for complex legal issues)
(165 Points)
Replied 13 June 2013
Dear Sneha,
A subsidiary company is a separate legal entity. There are two options to sell 100% shares.
A. Merger or Amalgamation : Sections 390-394 of the Companies Act, 1956
B. Acquisitions: Section 395 of the Companies Act, 1956 if it is unlisted company
SEBI (Substantial Acquisition of Shares and Takeovers) Regulations, 2011, if it is a listed company.
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