Sudhir Kumar Banthiya (Trainee) (38 Points)
04 May 2010Dear All,
Please help me with this.
A Ltd has 7 director on board.Another company B Pvt Ltd. has the same 7 directors on the board.The shareholders and shareholding of both the company is same.Whether B Pvt Ltd is a subsidiary of A Ltd ?
Friends waiting for ur reply's
Sudhir
Jagruti (CS)
(Service)
(1953 Points)
Replied 05 May 2010
B Ltd will be subsidaiary of A Ltd if
- A ltd is able to control the composition of Board of Director of B Ltd. or
- A ltd hold 50 % of equity shares in B ltd.
If out of above 2 if any one also is fulfilled than B will be subsidiary of A.
Just by having Common Director or Shareholder a Company cannot be said to be subsidiary of another Company.
CAclubindia
