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Purchase of shares by Sister Company

Jayanti Dey (Practicing Company Secretary) (271 Points)

08 April 2011

One of our Sister Company has purchased the shares from the shareholders of the main company in the month of May, 2010. What will be the procedure for the same?

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2 Replies

CA Sandeep Kumar (Audit Assistant) (804 Points)
Replied 08 April 2011

Hi, Is it a subsidiary company? I guess it is not, as it is not allowed in law for sub to make invmt in holding. Please mention what is required, procedure for?? Am sorry , could not understand the question.

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Jayanti Dey (Practicing Company Secretary) (271 Points)
Replied 08 April 2011

Its a sister company and its pvt ltd. It has purchased the shares at low value from the shareholders of the Parent company which is also a private limited company. When this purchase taken place at that time it was not the shareholder of the parent company. please tell me what should be the procedure for the same?