Controlling Powers/Voting Rights

This query is : Resolved

Rupesh Chokshi (Querist)
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23 December 2009 Dear Sir/Mam

I would like to know that whether BOD/Shareholder/Promoter of private company can retain its controlling powers with them even after reducing their share holding from 100% to 49% i.e. by transferring their 51% shares to a public limtied company.

Can they have controlling powers by having max. number of directors in new Board or by having voting bank with them.

Note:- Shares means equity shares.

Regards

CS Pawan Kumar Baid

CS Pawan Kumar Baid (Expert)
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23 December 2009 If a public ltd company acquires more then 50% of nominal capital of pvt company, then it is deemed as subsidiary and hence it will also be a public company.

At General meeting, if any matter is put to vote, then voting power is deciding factor.

Regards
CS Pawan Kumar Baid