Rajkumar (Practising professional) (25 Points)
23 September 2009hi,
Can anybody help me, I need an urgent answer for this.
For a company having a paid up capital of 100,000; 99,998 shares are held by a US company where as 2 shares are held by an individual as a nominee of the same US company. Will this make this company originally incorporated as a private company in India a subsidiary of a public company making its liable to obtain Central Govt approval under sec 198?
An urgent answer is much appreciated, Many thanks,
Raj
Ankur Garg
(Company Secretary and Compliance Officer)
(114773 Points)
Replied 23 September 2009
Hi,
Your company is not a public company within the meaning of section4(7) as the entire share capital is held by that US based company in its own name and in the name of its nominee.
Regards
CAclubindia
