I have a query:
Can a listed public company hold its investments in one of its subsidiary, in the name of another subsidiary?
X is a indian listed company, Y is US subsidiary and Z is Australian subsidiary.
X invests in share capital of Y - Can this investment be held in the name of Z??
Not possible…….. Investments made by the companies are to be held in its own name vide Section 49 read with Section 372A and 192A of the Companies Act, 1956 except that company can hold shares in a subsidiary in the name of a nominee to ensure that number of members is not reduced below the statutory minimum, i.e 2 in case of private companies and 7 in case of public companies.
I agree with Shyam. Well said!
Very well explained by Shyam...
| Originally posted by : Syam kamal | ||
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Not possible…….. Investments made by the companies are to be held in its own name vide Section 49 read with Section 372A and 192A of the Companies Act, 1956 except that company can hold shares in a subsidiary in the name of a nominee to ensure that number of members is not reduced below the statutory minimum, i.e 2 in case of private companies and 7 in case of public companies. |
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Very good explanation by shyam
Glad to see that we have so many experts appreciating the good work of fellow professionals!
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