28 June 2010
‘X’ is a fully subsidiary public limited company. ‘Y’ is the holding public limited company. Than in such situation, in subsidiary company there is only one shareholder named ‘Y’. Isn’t is violation of the provision specifying that there must be seven (7) members in any public limited company?
28 June 2010
Hi Devang Dooshi you question is quite good one i would say that, only from practical knowledge i can say that there is no violation in it as many big company have wholly owned subsidary therefore there will be no violation in it.
please give reference of the act that there is no violation. because there is possibility that it is contravercy matter & change is required company act.
CAclubindia
