Urgent query

Whether  a private company which is subsidiary of a public company shall be considered as  a public company?..

Whether all provisions of the Act shall be applicable to such aforesaid company as any other public company?

Please cite relevant section, case laws if any.

Replies (3)

Private Company which is a subsidiary of Public company is not exactly public company. Like it can have min 2 directors, paid up cap is reqd to be min 1 lakh, no retire by rotation reqd, the four essential clauses of private co will be mentioned in MOA/AOA.

But there are some section which will be applicable even though that section is not applicable to other private companies.

A simple way of interpretation is Sections which specifically mentions Every Public Comapny (and private company which is subsidiary of public company). those sections will be applicable and other sections applicable to public company which does not include these words wont be applicable.

According to Section 3(1)(iv)(c) Public Company means private company which is the subsediary of Public Company.Thus the Private Company which is the Subsediary of Public Company is placed on the same footing as that of a public company as per the provision of the act.Even then the basic structure of Susediary remains the same.Hence it is neither require to increase the number of Members to 7 from 2 nor it is required to alter the articles of association of the company.

The Basic characteristics of the Private company do not alter even though it is a subsediary of public company.

But for all other purpose under the act , the private company  subcediary of public will be treated as a public company.

The company has not filed any annual account to m.c.a for past 3 year but active working till now . they will decide to strike off now . what is the procedure for strike off.

 

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