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holding company

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Guest

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Guest (Querist)
23 March 2010 if one private limited company is holding 50% shares of another private limited company then is it treatd as holding and subsidiary relationship as per company act,1956???

or stake must be more than 50% only is required??
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Rasesh

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Rasesh (Expert)
23 March 2010 The law requires control of more than half of the total voting power of such company. hence, more than 50% would be required.

However, if the company can prove that the other controls the composition of its Board, then also it would be a subsidiary.
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CA Ashok Kumar Sahu

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CA Ashok Kumar Sahu (Expert)
23 March 2010 agree with expert
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