To form a company, it requires a minimum of 2 members to subscribe to the shares of that company.
My understanding is that, to incorporate a WHOLLY OWNED SUSIDIARY COMPANY, the same principle outlined above holds good.
It is interesting to note that, for a company to call itself a wholly owned subsidiary of a parent/ holding company, the entire share capital is to be held by the latter ( Holding/ parent co), which is contrary to the above principle.
To put it simple,
How does a wholly owned subsidiary company (1 member/company holding 100% capital) comes into existence while the Company Law requires a minimum of 2 members to set up a company.
Please deliberate on this!
CAclubindia
