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Sec.292A of companies act

Raj (CA) (514 Points)

29 June 2007

Is sec.292A is applicable to a company which is a pvt.Ltd. company subsidiary of Public Ltd.co. ?

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8 Replies

shobhit rastogi (student) (16 Points)
Replied 30 June 2007

Yes, because this section is applicable on public co. . and as per 3 (iv) of conpanies act 1956, private co. which is subsidiary of public co. is public co.

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Srivathsan Rangarajan (Chartered Accountant) (66 Points)
Replied 04 August 2007

I believe 292-A is not applicable to a private limited company. True that as per 3(i)(iv) a private company which is a subsidiary of a public company is a public company (amended by companies amendment act 2000) however, its only a deeming fiction. Had it been the intention of the legislators to apply the provisions to such private companies the same would have been expressly said as in sections 293, 300, 310, 311, 316 etc. Such private limited companies are construed as public companies only for certain express purposes and not for all intents. A private limited does not lose its character by being a subsidiary of a public company. Ipso facto constructive provisions have to be understood in the sense expressly conveyed thus and no far..

Rahul (Company Secretary & Manager-Legal) (216 Points)
Replied 08 March 2008

i completely agree with Mr. Srivathsan. Sec. 292 A expressly puts the obligation on Pub. Cos. only and is silent about private Cos. which are subsidiary of Pub. Cos. so Pvt. cos. need not comply with this section..

(Guest)

RANGRAJAN AND CO SECRETATRIES. I HAVE A CLIENT A PVT LTD CO. HAVING AUTHORISED CAPITAL 5 LAC ONLY.IT IS PURCHASING THE BUSINESS OF 2 PRO PRIETORSHIP FIRM OF DIRECTOR.AND THE ASSETS ARE OF 1 CRORE. CAN I TAKE IT AS SHARE APPLICATION MONEY . IF TO SHOW UNSECURED LOAN THEN RESTRICTION OF 269 SS ALSO IS THERE. ANOTHER THING I NEED NET WORTH OF AROUND ONE CRORE FOR SOME SUBMISSION IN MINISTRY.BUT CLIENT DOEST NOT WANT TO INCREASE AUTHORISED CAPITAL BECAUSE OF COST.PL SUGGEST

(Guest)

I HAVE ANOTHER QUERY RELATED TO NEW AMENDMENT IN BUDGET 2008. THAT TO CHANGE IN DATE OF TAX AUDIT BY 30.09.2009. SUPPOSE WE WANT TO FINISH THE WORK BY 15 .09.2009. AND THE AGM IS DONE ON 29TH SEPT OF THE YEAR. THEN HOW WE WILL FILE THE ITR OR COMPLETE THE AUDIT AND SING THE BALANCE SHEET WHEN IT IS PENDING FOR APPROVAL FROM DIRECTOR OF THE COMPANY. PL SUGGEST.

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Saraswati Siva (Manager ) (22 Points)
Replied 07 October 2009

Whether corporate governance is applicable to a listed company where the paid up capital is less than Rs. 5 crores

H.R.Sampath Kumar (Company Secretary) (62 Points)
Replied 07 October 2009

My humble submission is if a Private Company is subsidiary of a Public Company, it is a public company under Section 3 (1) (iv). Then, Sec, 292A prima facie becomes applicable. .

RAJKUMAR DUREJA (Chartered Accountant) (94 Points)
Replied 06 August 2010

hw many leaves are allowed to us in our articleship period of 3yrs including examination leaves and the days on which exam held.The day on which exam held should be count as leave or not.