Associate company

Co Act 2013 117 views 2 replies

There are two Private Limited companies and two Limited companies. 

Two directors are common in the said four companies.

The said companies do not hold any shares in the other companies.

Hence by virtue of common directors, are they to be classied as Associate companies or not, please help me.

 

Replies (2)
Significant Influence means control of atleast 20% of the total share capital or business decisions under an agreement.


In the given case there is no significant influence hence the said private company will NOT be an "Associate Company"

Thanks

 


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