Prejith (Pursuing CA) (92 Points)
05 June 2010According to sec 3 (1)(iv)(c): A company which is a private company is a subsidiary of a company which is not a private company is a Public Company.
Now my doubt is that, such companies as mentioned above have to comply with all the sections which are applicable to a Public Company ?
Rashmi
(Company Secretary)
(49 Points)
Replied 05 June 2010
Yes. You are right. Private Company which is subsidiary of Public Company have to comply with all the requirements of Public Company.
vivek
(CS)
(751 Points)
Replied 05 June 2010
Erstwhile we were using the term Deemeed Public Company, thy are supposed to follow all requirements of public company.
Prejith
(Pursuing CA)
(92 Points)
Replied 05 June 2010
Then in that case if the private company is incorporated with a paid up capital of Rs. 1,00,000/-, is there a requirement of raising it to Rs 5Lakhs or more and should it conduct a statutory meeting ?
vivek
(CS)
(751 Points)
Replied 05 June 2010
It will have to maintain the status as per Sec 3(1)(iii) in addition to that it will have to comply the requirement in the lines of public comp. wherever mentioned.
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 06 June 2010
NO.
Very humbly disagree with Rashmi.
A private copany which is subsidiary of a public company need not to follow all the provisions which are applicable to a public company. For example section-81 right issue which is not applicable to a private company.
To decide whether a section is applicable to such private company please check this clause in the section:
A public company and a private company which is subsidiary of a public company......
Check sections---268, 269, 259 etc....Use of this clause means applicability of this section on such private company...
Normally section 269 is not applicable to a private company but if private company is subsidiary of a public company than by virtue of this clause section 269 becomes applicable to such private company.
Thanks
varun gupta
(Senior Accounts Officer)
(89 Points)
Replied 06 June 2010
Ankur Garg will confused you, u should go with rashmi as she correctly says u have to comply with all public limited companies provisions except where specifically exempted by section for compliance.
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 07 June 2010
| Originally posted by : varun gupta | ||
 |
Ankur Garg will confused you, u should go with rashmi as she correctly says u have to comply with all public limited companies provisions except where specifically exempted by section for compliance. |
 |
Friend I am not here to confuse anyone and always believe in conceptual clarity.
I know Mr. Prejith is wise enough to understand my simple reply to his query.
Thanks
Jyoti Aggarwal
(COMPANY SECRETARY)
(336 Points)
Replied 07 June 2010
Yes Mr. Varun,
Mr. Ankur is very much right. .
Prejith
(Pursuing CA)
(92 Points)
Replied 08 June 2010
Ankur Sir,
Your reply was not at all confusing instead was of great help to me. Thank you sir.
But on the lighter side.... How did you score this much sir ? That's really great.
Thanks
Kalpesh Chauhan,
(Tax Assistant (Accounting Technician CA FINAL CS PROF. PROG. B.Com))
(8311 Points)
Replied 10 June 2010
I want to ask that will that subsidiary pvt co. of public company be termed as deemed public company?
Nitin Grover
(CS)
(1228 Points)
Replied 11 June 2010
Dear Friends
Only rules and provisions after incorporation except Stat. Meeting u/s 165 are applicable.
Regards
CAclubindia
