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No, according to Section 19 of the Companies Act, 2013, a subsidiary company cannot hold shares in its holding company and any such holding shall be void. However, there are exceptions to this rules:
- Where the subsidiary company holds such shares as the legal representative of a deceased member of the holding company;
- Where th...
Wazzeer Professional Network
ProfessionalCan a subsidiary company hold shares in its holding company?
-
Wazzeer Professional Network
ProfessionalNo, according to Section 19 of the Companies Act, 2013, a subsidiary company cannot hold shares in its holding company and any such holding shall be void. However, there are exceptions to this rules:
- Where the subsidiary company holds such shares as the legal representative of a deceased member of the holding company;
- Where the subsidiary company holds such shares as a trustee;
Where the subsidiary company is a shareholder even before it became a subsidiary company of the holding company.
almost 3 years ago
View answer
Can a subsidiary company hold shares in its holding company?
-
Wazzeer Professional Network
ProfessionalNo, according to Section 19 of the Companies Act, 2013, a subsidiary company cannot hold shares in its holding company and any such holding shall be void. However, there are exceptions to this rules:
- Where the subsidiary company holds such shares as the legal representative of a deceased member of the holding company;
- Where the subsidiary company holds such shares as a trustee;
Where the subsidiary company is a shareholder even before it became a subsidiary company of the holding company.
almost 3 years ago
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