Can a public company be a 100 % subsidiary of another public company.?
If yes , then what are the tecnical issues which are to be taken into consideration with reference to the companies act 1956.
2 Replies
sivaram
(Asst Mgr-Taxation)
(6918 Points)
Replied 10 November 2011
I am not an expert still put some views
Yes public co can be 100% subsidary of another public co
Rather than Technical issues I can say 1.clause32 of listing agreement makes consolidation of accounts of subsidary compulsory 2.Preparation of cash flow by indirect method
Wait for practicing company secreataries to further comment on the same
CA Goutam Sharma
(Chartered Accountant in Practice)
(468 Points)
Replied 10 November 2011
Under listing agreement,at least 25 % shares is to be held by public
again, there must be seven members in a public company.
Again,only individuals can be the directors
Again,Directors are required to take qualification shares.
I request the members to show concern and reference to the act
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