Company X has a shareholder named A who holds 99% of the shareholding in Company X.
The mother & father of A holds 26% each shareholding in Company Y.
Whether Company X & Y are related parties.
Plz reply asap
Thanks in anticipation.
Company X has a shareholder named A who holds 99% of the shareholding in Company X.
The mother & father of A holds 26% each shareholding in Company Y.
Whether Company X & Y are related parties.
Plz reply asap
Thanks in anticipation.
Yes,
Company X and Y are related parties as per AS 18 refer para 3 (c)
Mr. A holding 99% equity in Company X and his relatives are holding more than 20% (significant influence) hence both are considered to be related party
CAclubindia
