A Company has two directors having 5000 shares each, now the Directors transfer 4999 each from their holding to a Company and it wishes to make the Company a wholly owned subsidiary. What procedure is required for the same? Please reply
Priya (Professional) (117 Points)
18 November 2014A Company has two directors having 5000 shares each, now the Directors transfer 4999 each from their holding to a Company and it wishes to make the Company a wholly owned subsidiary. What procedure is required for the same? Please reply
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 18 November 2014
Option-I:
Transfer remaining 2 shares also in the name of the holding company and take action u/s 187(1) of CA 2013 read with Rule 14 of Companies (Meetings of Board & its Powers) Rules 2014.
Option-II:
Transfer remaining 2 shares in joint names of the holding company as the first holder and someone else as the second holder.
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