can xltd be holding co of any other co with out holding prescribed shares ?? explain ??
2 Replies
CA MAYANK WADHERA
(CA CS CMA(I))
(789 Points)
Replied 01 February 2013
Yes, there are other two reasons:
1. The directors of the BOD of X ltd. are also directors in other co. and having control over the management of the other co.(Control Over BOD/Management of other Co.)
2. If X ltd. is a holding co. of Say A ltd. and A ltd. has Bltd as its Subsidiary, then Xltd will also be a holding Co. of B Ltd. even do not directly holding any Shares.(Chain Holding)
CMA.ch.raja krishna prasad
(CMA CS(final) CAIIB M.B.A M.Com)
(173 Points)
Replied 02 February 2013
If you read the holding company definition its clear that any company controling 51% or more share capital or controling majority board of directors of another company.
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