3 Replies
Pankaj Arora
(Learner)
(3134 Points)
Replied 15 March 2012
yes ABC Co. Will be holding co. of X ltd. Because its hold more than 50 % shareholding.
prakash
(Company Secretary)
(1352 Points)
Replied 15 March 2012
According to sub-section 1, the composition of a company's Board of directors shall be deemed to be controlled by another company if, but only if, that other company by the exercise of some power exercisable by it at its discretion without the consent or concurrence of any other person, can appoint or remove the holders of all or a majority of the directorships:
According to the above provision Y cannot appoint or remove the directors without consent of X so that it cannot be subsidiary of ABC Company.
Please go through Shareholders agreement if any or AOA to know powers of Y to appoint or remove directors.
vijeesh V R
(CA Final)
(91 Points)
Replied 16 March 2012
Hi prakash sir,
i think in above case ABC is controlled by two enterprises,one by voting power and by BOD controls,hence Y also will also be considered as holding.
Please clarify.
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