Cross Holding

RITU BAJAJ (COMPANY SECRETARY) (158 Points)

29 June 2010  

My query is :-

There are 4 NBFC Cos. A, B, C & D. All are private limited Companies.  Can Company B, C & D hold 30% shares each in Company A together their holding will become 90% in Company A. Similarly can company A,C & D hold 30% shares each in Company B, and company A, B & D hold 30% shares each in Company C and Company A, B & C hold 30% shares each in Company D. Is this type of structuring possible? What can be the possible consequences of such structuring? What is to be taken care of while doing such a structuring? 

Please advice on the above.

Thanks in Advance.