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Qualification shares

Prafful Saxena (Article assistant) (113 Points)

23 November 2012

Does section 270 apply to private company if it is a subsidiary of public company?

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Rohit Kapoor (CA Final) (543 Points)
Replied 23 November 2012

Pvt co if it is a subsidiary of public co deemed to be a public co . So sec 270 will be applicable on pvt co.

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manoj (student) (5205 Points)
Replied 23 November 2012

Yes section 270 will be applicable as it is deemed to be public company but before applying section 270 u have to see the articles of company if der is a provision for Qualification shares den section 270 will apply.

Amit Kumar Verma (CA Final CS Professional) (501 Points)
Replied 23 November 2012

As per Section 3(1)(iv) of Companies Act, a private company which is subsidiary of a public company is also a Public Company. Therefore Section 270 will apply in your case. But remember that Section 270 does not mandate the directors to have qualification shares. It will be applicable only if the Articles of the company require so.