holding & subsdiry Co

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

14 August 2010 what is Holding Co. & alsosubsdiary Co. if possible kindly give the example, what r the difference between them

Jagruti (CS)

Jagruti (CS) (Expert)
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14 August 2010 As per Sec 4 of the Companies Act:

A is said to be Holding of another if
1. it holds more than 50 % of nominal value of equity share capital of other Co.

Thus if A ltd holds 51% of equity share capital of B ltd than A lts is said to be Holding Co. of B.

2. it controls the composition of the Board of Directors of the other Company.

Or if without the approval of A ltd. none of directors in B ltd can be appointed than A is holding of B