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Companies under the same management

Sourav Modi (Learner!) (306 Points)

22 December 2011

What is the concept of 'companies under the same management'? I read somewhere that section 370(1B) which contained provisions regarding this was deleted in the year 2000. Is there any other section which speaks about this thing?

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4 Replies

CS RAJESH C.CHOUDHARY (ASSISTANT MANAGER) (14607 Points)
Replied 24 December 2011

State your problem straightway.

Elaborate your query.

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Sourav Modi (Learner!) (306 Points)
Replied 25 December 2011

Ok. What are the criterias required to be fulfilled or in which situations two companies can be said as 'companies under the same management'? Earlier section 370 (1B) contained provisions regarding this but now since the section has been deleted, can the same be referred for the definition purpose of this term?

I hope my query is much clear now.

Charu Srivastava (Company Secretary) (4210 Points)
Replied 25 December 2011

two bodies corporate shall be deemed to be under the same management-

(i) if the managing director or manager of the one body is managing director or manager of the other body; or

(ii) if a majority of the directors of the one body constitute, or at any time within the six months immediately preceding Constituted, a majority of the directors of the other body

(iii) if not less than one-third of the total voting power with respect to any matter relating to each of the two bodies corporate is exercised or controlled by the same individual or body corporate; or

(iv) if the holding company of the one body corporate is under the same management as the other body corporate within the meaning of clause (i), clause (ii) or clause (iii); or

(v) if one or more directors of the one body corporate while holding, whether by themselves or together with their relatives, the majority of shares in that body corporate also hold, whether by themselves or together with their relatives, the majority of shares in the other body corporate.]