Suman Khurana (ACS) (209 Points)
21 July 2009Hi
Please tell me exact definition of Wholly owned subsidiary. According to me: having complete i.e. 100 % shareholding in other company.
Holding 99% shareholding in another company does not make it WOS.
Regards
Hinna Garg
Binish C
(Student)
(54 Points)
Replied 22 July 2009
Hello Hinna,
WOS = A subsidiary whose holding company owns its entire i.e 100% share capital.
Holding & Subsidiary:
1) One company controls the composition of the board of directors of another company.
2) One company controls more than 50% of the voting powers of another company.
3) One company holds more than half in the nominal value of equity shares of another company
4) A subsidiary company's subsidiary is also subsidiary to the holding company.
Please refer to section 4 of Companies Act, 1956.
Regards,
Binish
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