Definition of subsidiary
This query is : Resolved
25 March 2008
Please clarify! The Companies Act,1956 defines subsidiary.A company which holds more than 50% of the voting power or equity capital of other company,that other company is the subsidiary of the first mentioned company.But if a company holds just 50%,then would that be considered as subsidiary!!!
25 March 2008
I just want to clarify that its 50% or more.
25 March 2008
it is exactly 50%
25 March 2008
As per section 4(1)(b)(ii) of the companies act 1956, if a company holds more than half in the nominal value of equity share capital of another company,than such another company is a subsidiary of first mentioned company.The wording of section i.e.more than half,clearly says that it is more than 50% & not exactly 50% even.
25 March 2008
> then 50%
25 March 2008
IT IS MORE THAN 50% OF SHARE CAPITAL OR VOTING POWER WHICH IS REQUIRED TO BE HELD BY ANOTHER COMPANY TO BECOME A SUBSIDIARY OF THAT COMPANY AS PER SEC 4 OF COS ACT.
R.V.RAO
R.V.RAO
25 March 2008
MORE THAN 50 % DOES NOT AT ALL MEANS 50 %
25 March 2008
it should be more than 50%.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- REGARDING GST ON COMMERICIAL PROPERTY
- Is this income indian or foreign income?
- 15ca /15cb whose income tax login? remitter or nri seller's login?
- RCM applicability on Rent Paid by Registered Person to Unregistered Landlord for Residental Building
- GST on export of services and Input Credit
- Regarding Documentation & Compliances for Opening of Unit of Pvt Ltd.
- TDS U/S. 194NF
- ITC temporary reversal and reclaim
- Applicable TDS rate for sale of property in Nov 2024
- Donation Receipt u/s 80G
- MIS MATCH OF INVOICE NUMBER
- VERIFICATION OF REFUND RELATED
- GST Regis.
- ITC c/f from FY2022-23 to FY2023-24 entered the same in table 8C of GSTR9 of FY 2022-23, in FY23-24
- Late filling fees Demand by gst office
- IGST Credit-Show cause notice issued-confusion
- Short and Excess provision of expenses
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
Trending Online Classes
CAclubindia
