Suppose there are 2 pvt ltd. companies X and Y Pvt. Ltd.
Mr. A, B, C are the 3 shareholders and directors of both the companies. Now a contract has to be entered into X & Y wherein X has to give contract amount to Y.
Now my confusion is as per section 184, every director is interested so quorum as per section 174 can't me met, so how to deal with the situation. Does it will require a Ordinary/special resolution by members?
Also 1 more thing. the management of of X & Y is same and so is the shareholding, so has consolidated financial accounts has to be made? if yes, then which company will be the holding and which co, will be the subsidiary?
31 May 2014
Holding subsi relationship will be decided based on the shareholding pattern of company.
Desired resolution will be passed in the general meeting. There is no other way. Interest related provisions are not applicable to the general meeting.
OR or SR is dependent on the resolution.
Thanks
Querist :
Anonymous
Querist :
Anonymous
(Querist)
06 June 2014
So Sir, there is no holding subsidiary status and also both can be treated as small companies provided all other conditions are met?