Sec 2 (6) of the companies act, 2013 - associate company

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

03 March 2016 Dear Experts,
Can any body please clarify the following

Sec 2 (6) of the Companies Act, 2013 - Associate Company
" in relation to another company, means a company in which that other company has a significant influence.

significant influence = control of at least 20% of total share capital.

Question: if the other company does not hold any shares in this Company but directors of other company are holding more than 20% of total share capital of this Company. Then, can these two companies are associate?

Regards
Rajesh Kumar Yadav
Company Secretary

Pratik Shah

Pratik Shah (Expert)
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03 March 2016 No..it can not be called as Associate Company.

Definition clearly says 'a company in which the OTHER COMPANY has significant influence.

Message likes : 1 times

Querist : Anonymous

Querist : Anonymous (Querist)

04 March 2016 Thank you Mr. Pratik.

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