URGENT

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

09 May 2011 We have incorporated one company name B, in which two promoters are there one A (holding company)and sencond one Mr.XYZ, MD of A. Total subscription was 3,01,000 Equity Shares (30,000 (99.67%) holding by A and 100 (0.33%) by Mr.XYZ (Individually). Mr. XYZ was MD but he has acquired the 100 shares individually. Can you please tell me can we assume Company B Wholly owned subsidiary of A or Parent Company I want the exact definition of Wholly Owned Subsidiary, Partial or Parent Company. How Much shareholding required by the holding company to become B as a wholly subsidiary company How much shareholding required by the Company A to become other company as a parent company Please share your views as this is very on urgent basis. I was confused as there are so many different opinion on this matter.

Guest

Guest (Expert)

09 May 2011 For a Company to be Called as a " Wholly Owned Subsidiary", it Should hold 100 % of Equity Shares of the Latter.

However,you cannot assume,that Company "A" is W.O.S unless, you file a declaration from Mr.XYZ (M.D)-who is also a shareholder of Company "B", declaring himself, that he is a nominee shareholder of Company "A" (saying that he holds no beneficial interest in shares) and the same should be approved by the board resolution.

Along with a Certified Copy of Board Resoln, Attach the Declaration of Non Beneficial Shareholder &
File Form 22B with ROC...

Reference Section: Section 187C of Companies Act