01 September 2014
As per section 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, but which is not a subsidiary company of the company having such influence and includes a joint venture company. Explanation.—For the purposes of this clause, “significant influence” means control of at least twenty per cent. of total share capital, or of business decisions under an agreement;
The term Group is not defined under the companies act. However Two or more corporations that are related through common ownership in general terms means group company. Group consists of a parent corporation and one or more subsidiary corporations.
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