28 June 2008
Co. B is demerged from Co. A. Promoters & Chariman being the same. Share holding of Co. B is Promoters' share- 68.44% Co.s A's stake- 13.27% Associate Co.'s stake- 10.00% Public 5.61% Others 2.68%
Will Co. B be termed as a subsidiary/ group co. of Co. A?
01 July 2008
It is only a related party and not a subsidiary as Co A is not holding majority interest in the Co B. If it is controlling the board then may be taken as subsidiary. Check under AS 21 and section 4 of companies act.
22 July 2008
True.However, plz also note that the promoters of both the Co.s r same. And Main promoter is CMD (heading the board of Directors) in both the companies. So the controlling in that manner is of the same nature.
Considering the same control in both the co.s , shall the Co. B be termed as the part of same group as that of Co. A?