legal position of a pvt co. which is subsidiary of public co.
9 Sept 2011, 17:43
Hi
Will a private company which is a subsidiary of public company be required to comply with all the sections of Companies Act, 1956 where the bare act uses the term ‘public company’ and does not expressly provides that the section is also applicable to private company subsidiary of public company, keeping in view of the definition of public company as provided under section 3(1)(iv) after Companies Amendment Act, 2000.
Say for example section 295 of the act?
If the answer to above question is yes, then does such company will also be required to raise the number of directors to 3?
1 Reply
Firstly, your company needs to comply with all the provisions applicable to public companies under the Companies Act.
secondly, No you need not delete the word private from the name of the Company. All the conditions prescribed in 3(1)(iii) are applicable to the company and if the company wants delete the word private, it has to follow the procedure as stipulated
thirdly, information of being subsidiary is required to be furnished in Annual Filing.
fourthly, all the conditions prescribed in 3(1)(iii) are applicable to the Company