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Holding subsidiary relationship

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(Querist)
28 March 2012 I am confused whether there can be following circumstance or not:

A Ltd holding 51% shares in B Ltd. AND
B Ltd holding 51% shares in A Ltd.

So What kind of relationship prevail in such circumstance?

And What are consequences of applicability of AS 21 if both are listed companies?
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CA Nikhil Jhanwar

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CA Nikhil Jhanwar (Expert)
28 March 2012 Now this type of holding i.e. inter company holding is not allowed......So this transaction will not exist practically unless one company already holds in another company before commencement of Companies Act,1956
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Ajay Mishra

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Ajay Mishra (Expert)
28 March 2012 Hi

As per section 42 (1) of the Companies Act, 1956 a subsidiary can not become member of irs holding company.

Regards
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