please tell me if a comapny(A) purchase more than 50% shares of another comapny(B). Wether A co. can adopt any measure to restrict B co. not to Purcahse shares of A co. can it be possible that B co. purchase 50% or more shares of A co.
CA Udit Garg (CA) (55 Points)
05 March 2010please tell me if a comapny(A) purchase more than 50% shares of another comapny(B). Wether A co. can adopt any measure to restrict B co. not to Purcahse shares of A co. can it be possible that B co. purchase 50% or more shares of A co.
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 05 March 2010
Look, A co acquires management control (after it acquires +50% holding in B co.)... so it can restrict few transactions of Bco..
In ur query, i think yes ofcoarse it can restrict
CA Dhiraj Ramchandani
(CA, M. com)
(10823 Points)
Replied 06 March 2010
Hi udit... confirmed from sources.
Once the parent becomes holding company of subsidiary co., COMPANIES ACT itself restricts the subsidiary co to purchase any share of holding co.
GSTR 9 and 9C for FY 23-24 as amended by Notification 12/2024 dated 10th July 2024(with recording)
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