A Private Limited Company's shares are purchased by a public limited company so as to constitute that the private limited company becomes the subsidiary of the public limited company.
In this context, what are the procedures to be followed by the private limited company?
Explanation:
A - Private Limited Co B - Unlisted Public Limited Co
52% of A's shares are purchased by B. What must A do ?
13 January 2012
Definition u/s 3(1)(iv) of Companies act says that a private company which is subsidiary of a company which is not private company - shall be public company.
As A (pvt) is subsidiary of B (public), hence A shall be now public and however it need not to change its name, remove provisions of Sec 3(1)(iii) from its article, and change its capital/members etc.
CAclubindia
