Please reply the query in the context of companies act 1956 as well as companies act 2013 if there are different provisions
pvt ltd company which is subsidiary of a public company is deemed public company or what?
And if it is deemed public company means all the provisions which are applicable to public company will apply to it also in the same manner And all the exemptions granted to pvt company are also allowed to it? Please Reply.
08 September 2014
As per definition given in section 2(71) of the Companies Act, 2013, a company which is a subsidiary of a public company, shall be deemed to be public company for the purposes of this Act even where such subsidiary company continues to be a private company in its articles.
Provisions applicable to public company shall be applicable to such private company which is subsidiary of public company.
08 September 2014
Please Answer this question which is related to CARO 2003,
Under CARO, 2003 , how , as a statutory auditor would you comment on the following:
X Pvt. ltd. is a subsidiary of a listed entity incorporated outside India. The management of the company believes that since, X Pvt. Ltd. is a private company and satisfies all condition under the Companies ( Auditor's Report ) Order, 2003. reporting under CARO is not applicable.
09 September 2014
As far as a private company, which is a subsidiary of a body corporate incorporated outside India is concerned, it may be noted that section 4(7) of the Companies Act, 1956 Act provides that:“(7) A private company, being a subsidiary of a body corporate incorporated outside India, which, if incorporated in India, would be a public company within the meaning of this Act, shall be deemed for the purposes of this Act to be a subsidiary of a public company if the entire share capital in that private company is not held by that body corporate whether alone or together with one or more other bodies corporate incorporated outside India.”
By virtue of section 3(iv)(c)of the Companies Act, 1956 , a private company, if it is a subsidiary of a body corporate incorporated outside India, which if incorporated in India would have been a public company and some part of its share capital is heldby a legal entity in India, would become a public company within the meaning of the Act. Therefore, the Rules would also be applicable to such a private company.
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