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100 % subsidiary

Ashish Ostwal (Practice) (30 Points)

01 July 2010

Hi All

Can anyone tell me that if minimum number of members required for public limited company are 7 than how can a company be 100% subsidiary of another company where all the shares are held by 1 Company.

Regards

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9 Replies

CA Sanjay Jha (ACCOUNTS MANAGER) (914 Points)
Replied 01 July 2010

MY DEAR ASISH ITS IS POSSIBLE IF

COMAPNY HOLD ALL SHARES DIRECTLY OR REPRESENTATIVE

SO A COMPANY HOLD A SHARE DIRECTLY AND 6 SHARES HOLD BY ANOTHER 6 PERSON BEHALF OF COMPANY.

ITS INTIMATION HAVE TO BE FILE ROC.

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Ashish Ostwal (Practice) (30 Points)
Replied 01 July 2010

Ok...It means a Company can have its nominee as other 6 shareholders and members to meet the requirement.

vivek (CS) (751 Points)
Replied 01 July 2010

definetely other 6 members will hold shares onbehalf of the company

Ankur Garg (Company Secretary and Compliance Officer) (114773 Points)
Replied 01 July 2010

Please find attached herewith my handout on company law and go through the situation on page 21 of handout (Exception-2). Trust this would help you to understand in a different way.

Thanks

Attached File : 24 company law handout colour.pdf downloaded: 302 times

2 Like

Max Payne (employed) (2574 Points)
Replied 01 July 2010

I have a doubt....

What is the process by which a sole proprietorship concern can be succeeded by a company?

Can you tell me the procedures to follow?

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CS Ankur Srivastava (Company Secretary & Compliance Officer) (17853 Points)
Replied 01 July 2010

Yes in order to maintain a Wholly Owned Subsidiary, the company is requird to obtain all the shares but 6 shares are required to be taken by 6 other persons on behalf of the company to maintain the 7 members limit and to comply with the law.