saroj kumar jain (CA) (72 Points)
26 August 2016Hi Everyone, Can any one clearify that in a Pvt Co. can a share holder hold 99% on behalf of a foreign company and 1% on his own name? For example: Indian Pvt Company X, Y an NRI individual and Z is a foreign Company. In this case can Y hold 99% shares of Co. X on behalf of Co. Z and 1% on his (Y) name?
If possible please refer relevant section or rule.
Thanks....
P C Agrawal
(Registered independent director Past Chairman of Aurangabad Chapter of ICSI Practicing Company Secretary at Aurangabad)
(8229 Points)
Replied 13 September 2016
What do you mean by holding shares on behalf of foreign company? Foreign co. can hold the shares in its own name. In case of declaration of beneficial interest refer Sec.89 and rules framed thereunder. You should also ensure compliance of provision relating to quorum for general meetings.
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