Private company becoming subsidiary of public company

This query is : Resolved

Sathyan Avinash (Querist)
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13 January 2012 dear Sir,

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 ?

CS Pawan Kumar Baid

CS Pawan Kumar Baid (Expert)
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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.

Regards

Jiten Gupta

Jiten Gupta (Expert)
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13 January 2012 Dear Expert,

A pvt Company being a subsiadiary of Public company need not to change its name, Capital, AOA or anything else.

Though it will be treated as public company but it shall have status of pvt company only.

All the provisions which are applicable on public company shall be applicable on such subsiadiary.

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