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Conversion of subsidiry co. into wos

ACS Parul Rawat (Entrepreneur | Corporate Law Advisor | Lawyer in Making | AIR-8) (218 Points)

12 March 2016

What are the provisions to make a Subsidiary Co.(Public Co.) a WOS Co.? Is it necessary to hold 100% shareholding by the holding Co. or 99.89 will also solve the purpose? Kindly Guide

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2 Replies

Pratik Shah (Practising Company Secretary) (4432 Points)
Replied 12 March 2016

It has to be 100% shareholding. However, as per Companies Act, atleast 7 persons (in case of Public Company) and 2 persons (in case of Pvt Co) are required. In such case, you need to have few shares in other persons name but the benefical ownership shall be in favour of Holding Company.. In this way, that company will become WOS.

Please also refer Section 89 of Companies Act 2013 which mandates for certain declarations for disclosing benefical ownership of shares.

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ACS Parul Rawat (Entrepreneur | Corporate Law Advisor | Lawyer in Making | AIR-8) (218 Points)
Replied 12 March 2016

Hi Pratik!

Thanx fr ur Rply!

The Co. is having 12 members including 1 the Holding Co., holding 51% Shares. Now if we want to make this subsi. co. WOS then is it nt possible that any 6 members can hold 0.11% shareholding and rest 99.89% can be held by Holding Co. which can be rounded off to 100% (rounding 99.89% to 100%)?