Can the company held the shares of the subsidiary company or of any other company under its name or it will held the shares in the name of the directors but the beneficial owner is the com?
Can the company held the shares of the subsidiary company or of any other company under its name or it will held the shares in the name of the directors but the beneficial owner is the com?
The company can hold the shares of the subsidiary in its own name. However, if the subsidiary is a wholly owned subsidiary, then you will be required to have atleast one share transferred in the name of some authorised person so that the subsidiary satisfies the requirement for minimum number of members. (two for private and seven for public compan).
The benefitial interest of these shares should be held by the holding company and not the authorised persons, so that the subsidiary company qualifiies as a wholly owned subsidiary.
I support Rashesh's views
Company being a legal person can hold the shares in its own name.
Naveen Fintech Pvt Ltd
Kolkata
CA Inter
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CAclubindia
