26 June 2010
1. The holding company does not all shares only in its name only. one share is issued jointly with the name of the director of the company.
For eg. in case holding company is X Pvt. Ltd. of Y Pvt. Ltd. having 10,000 share of Rs. 10/- each then X. Pvt. Ltd. will be holding 9,999 shares in its own name and 1 share will be held by it jointly with a director or any other person who will be the nominee of the company.
So there will be two shareholders in the company and it will not be violation of any rules though entire 10,000 share may have been purchased by X Pvt. Ltd. only.
2. If your second query is in conjunction with the first then both queries have been resolved.
26 June 2010
There is no limitation of period as all the wholly owned subsidiaries are held in this way only. Otherwise there is no other way to make companies wholly owned if the entire shares are not held by one company.
However there is a requirement of minimum shareholders by companies act and hence the other shareholder is also there jointly with the company.
It is considered as entire shares are held by A Pvt. Ltd. the holding company and its nominees.