24 August 2013
The company will be treated a s Private Company.
Section 4(7) of the Companies Act, 1956 lays down that "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."
For better understanding, an Indian Subsidiary of Foreign Public Company is not considered as a public company, if entire share capital of such an Indian Subsidiary is held by foreign company/companies incorporated outside India.
It is stated in the query that 20% stake is Indian and therefore the said company will be treated as a PRIVATE COMPANY only.
Querist :
Anonymous
Querist :
Anonymous
(Querist)
27 August 2013
Thanks for the information provided.
But if the shares of Indian Comapny fully held by foreign national listed comapny / ies ??
CAclubindia
