ACCOUNTANT
(Student)
(559 Points)
Replied 29 April 2016
a private company holding a public company is deemed to be a public company us 4a of the old act, but in new act this provision is repealed
Surya Raj
(student)
(6 Points)
Replied 29 April 2016
4a of companies act 1956 relates to public finanancial institues which are deemed public companies,but not private holding company to be a deemed public company.. Can you please provide further info if any?
Pratik Shah
(Practising Company Secretary)
(4432 Points)
Replied 30 April 2016
It shall be termed as Deemed Public company. Please refer proviso of Section 2(71) of Companies Act, 2013. This provision is not repealed in new act.
ACCOUNTANT
(Student)
(559 Points)
Replied 30 April 2016
hey sorry its 43A .,That mentions of a deemed public company., for all holdings of a body corporate or a corporation in a private company or for all holdings of a public company more than 25% in a private company.
The deemed status continues even if the member are below 7 for such public company,.such provision is not there in the new act
Surya Raj
(student)
(6 Points)
Replied 03 May 2016
Thank you for your replies, but to make u understand the situation, let me take a live example. there are three companies now, say GMR holdings private ltd which holds GMR infrastructure ltd and GMR energy ltd. The GMR holdings is a private company and it s not a subsidiary of any other company, it solely holds the two infra and energy ltd's, which r public companies, (we can check the company status in MCA21 master data) and even the 43A says """that where not less than twenty- five per cent. of the paid- up share capital of a private company having a share capital, is held by one or more bodies cor- porate, the private company shall be deemed public""" but in above case GMR holdings is a private Co. and even the two GMR infra & GMR energy doesn't have any shares in GMR holdings to apply 43A.
and 2(71) just defines the definition of public company, but not Certain elaborate cases where the Private Co. can be deemed to be a Public Co. Can you plz provide any further information.
Pratik Shah
(Practising Company Secretary)
(4432 Points)
Replied 03 May 2016
If holding company is private limited company who is holding shares of public companies, then such private limited company will remain private limited company.
I guess, your original query was confusing. I hope this clarifies now.
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