25 April 2009
If a company becomes public due to being subsidiary of a Public company by virtue of section 3, Pls clarify
1. Whether section 297 and 81 will be applicable after becoming public as such? 2. when a company becomes public by virtue of this section, In such a case all the section of Companies Act becomes automatically applicable on such company relating to all section which are applicable to public ltd company 3. Such Public company has to increase its paidup capital, no of directors and members mandatorily or not 4. Is there any section in Companies Act, which clarifies the position particularly which section applies and which section does not apply for such public changed company.
2. Not all sections. If the section specifically says that that section is applicable to a company which is a subsidiary of public limited, then its applicable.
26 April 2009
I agree with Mr.Vivek except on point no.3 i.e the co. needs to increase its paid-up captial and no of members and directors if they are below the limit and this is specifically mentioned in Sec.3
28 April 2009
I am sure a company which becomes a subsidiary of public ltd need not increase its capital to 5 lac, no of members to 7 and no of Directors to 3.
CAclubindia
