I would like to know that whether BOD/Shareholder/Promoter of private company can retain its controlling powers with them even after reducing their share holding from 100% to 49% i.e. by transferring their 51% shares to a public limtied company.
Can they have controlling powers by having max. number of directors in new Board or by having voting bank with them.
23 December 2009
If a public ltd company acquires more then 50% of nominal capital of pvt company, then it is deemed as subsidiary and hence it will also be a public company.
At General meeting, if any matter is put to vote, then voting power is deciding factor.
CAclubindia
