Issue of shares by subsidiary at par

920 views 1 replies

Subsidiary is acquired by the holding company by paying premium.

Now subsidiary wants further issue shares at par which could result into dimunition in the value of investments hold by holding company

Kindly advice and provide any case law on the same.

Replies (1)

 

Hello!


As per my views whatever happened in a subsidiary co. happens with the consent of holding co. either by way of hold in management or by way of voting powers.

So if the subsidiary co want to issue capital then that further issue can be alloted to that holding co. which would nt effect the holding subsidiary relationship........and in case when holding co is nt ready to accept the new issued capital then the co doesnt have other way out there would be dimunition in holding co. %age holding.

Any others view..........


Regards
Nidhi

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
04 June 2026
Semi Qualified CA

Goyal Puneet & Associates

New Delhi

CA Final

View Details
Company
12 June 2026
Accounts & Taxation Executive

Winshine Financial Services

Mumbai

CA Inter

View Details
Company
19 June 2026
Accounts Executive

Getfive Advisors Pvt. Ltd.

Ahmedabad

CA Inter

View Details
Company
ARTICLESHIP 27 June 2026
Article

SNCO

Mumbai

CA Inter

View Details
Company
Featured 24 June 2026
HEAD - AUDIT AND TAXATION

A R JADHAV AND ASSOCIATES

Mumbai

CA Inter

View Details
Company
24 June 2026
Chartered Accountant

CA Darshita Shah & Co

Nadiad

CA

View Details
Company
ARTICLESHIP 20 June 2026
Articleship

RB KESHRI & CO

Mumbai

B.Com

View Details
Company
10 June 2026
Senior Account Executive

JDS Advisory LLP

Ahmedabad

CA Inter

View Details