Rajeev kumar Nayak (ACS) (283 Points)
16 February 2011Hi,
I wanmt to know that why in a listed company promoters do not hold shares directly. They hold it through some closely held investment company.
What is the benifit of such indirect shareholding when dividend declared by the company is exempt in the hand of receipent under Section 10(34) of the Income Tax Act..
Please reply..
Thank s in advance
Rajeev Nayak.
Sudhir Garg
(Service)
(236 Points)
Replied 16 February 2011
Hi
It is not madatory for promoters to have the shares through investment company. The purpose may be
: To generate capital in investment company.
: heavy investment in listed companies needs huge money which is easy for investment company rather than in the Books of personal.
: To get growth of its investment coompany simultanously with the main company.
: To keep itself out of legal issues being shareholder and rather than concentrate on management.
:
regards- sudhir
CAclubindia
