Dear Friends
One private limited company in India going to approve transfer of 60% its paid up capital to some foreign company.
As per section 4(7) of the Companies Act, it will become a deemed public company.
What formalities do we need to follow like increase in members to 7, directors to 3, remove word private OR these are not required.
thanks
Dear Mr. Niraj Goel,
In case the Foreign Company is a Private Company, the Indian subsidiary company would remain a Private Company. It is only if the foreign holding company is a Public Company you are to take actions as listed by you. In any case alteration of Articles is not required.
Regards,
S.K.Jain
Practising Company Secretary
9810104162; skj13 @ rediffmail.com
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