Holding & Subsidiary

shantanu (Employed) (45 Points)

25 March 2011  

Dear All,

Whether a holding company issue shares to its subsidairy and vice-versa whether subsidairy company issue same amount of sahres to its holding as well. It can be treated as a barter deal where the total amount is same however, the no. of sares and the share premium price is so fixed to keep the ultimate price the same. 

Whether the same is allowed under Companies Act or any other applicable law?????