Law interpretation

A " Holding company" may be a " Subsidiary Company "of some other company. Similarly a " Subsidiary company " may be a " Holding company " of some other company.  A company shall be deemed to be a subsidiary of another, subject to the provisions, of sub section (3) of section 4, of companies Act, 1956.

Ex: 1:- Controls the composition of Board of Directors. ABC Ltd company controls the composition of Board of Directors of DEF company. Here, ABC Ltd company is a Holding company. DEF Ltd. company is deemed a subsidiary company, for the purpose of this act.

The expression ' Company ' includes any 'Body Corporate'.

Example: " Munich versions private ltd., is incorporated in India. It is a subsidiary of ' Cackson company ' a body corporate incorporated in Singapore. Assume that if the ' Cackson company ' incorporated in India, it would be treated as a ' public company ', then for the purposes of this Act,  "Munich Versions Private Ltd " is treated as a subsidiary of a public company.

thanxxx sir 

""not being a private company"".

means a company otherthan a pvt co.

a pvt. co. subsidiary of public. co. is deemed public co.

Does being a Subsidiary of Public Company means that the Subsi Company shall not be allowed to any relaxation provided to it under the Act and it has to comply the more stringent provisions applicable to Public Companies including some basic one like having minimum 3 Director, 7 Members and Min. 5 Lac Paid Up Capital. But it would not be entitled with the benefits availabe to Public Company like free transferebility of Shares, Acceptence of Deposits, restriction on invitation for subscripttion of its shares, pre-empt offer of allotment to existing shareholders etc.