Can subsidiary company hold shares of holding Company? Section 19 of Indian Companies Act 2013. Subsidiary Company not to hold shares of its holding Company.

 

 

Section 19 Subsidiary Company not to hold shares of its holding Company - Indian Companies Act 2013

As per Section 19 of Indian Companies Act 2013 a subsidiary company cannot hold the shares of its holding company. Any such transfer is void. Provisions in the Indian Companies Act 2013 regarding holding of shares by subsidiary company of its holding company is as under.

 

(1) No company shall, either by itself or through its nominees, hold any shares in its holding company and no holding company shall allot or transfer its shares to any of its subsidiary companies and any such allotment or transfer of shares of a company to its subsidiary company shall be void:


Provided that nothing in this sub-section shall apply to a caseó
(a) where the subsidiary company holds such shares as the legal representative of a deceased member of the holding company; or
(b) where the subsidiary company holds such shares as a trustee; or
(c) where the subsidiary company is a shareholder even before it became a subsidiary company of the holding company:


Provided further that the subsidiary company referred to in the preceding proviso shall have a right to vote at a meeting of the holding company only in respect of the shares held by it as a legal representative or as a trustee, as referred to in clause (a) or clause (b) of the said proviso.


(2) The reference in this section to the shares of a holding company which is a company limited by guarantee or an unlimited company, not having a share capital, shall be construed as a reference to the interest of its members, whatever be the form of interest.

 

Section 3 to 20 of Indian Companies Act 2013

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What is Articles of Association of Company? What are the requirement under section 5 of Indian Companies Act 2013 in case of Articles of a Company? How to prepare Articles of a Company?

What is Act to override Memorandum and Articles of Association of Company? What is the provisions under Section 6 of Indian Companies Act 2013?

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Commencement of Business, Section 11 of Indian Companies Act 2013

What are the provisions under Section 12 of Indian Companies Act 2013 regarding Registered office of a Company? What are the penalty provisions for violation of law?

How to alter Memorandum of a Company? Section 13 of Indian Companies Act 2013 regarding changes in the memorandum of  Company

How to alter Articles of a Company? Section 14 of Indian Companies Act 2013 regarding changes in the Articles of  Company

Alteration of Memorandum and Articles to be noted in every copy. Section 15 of Indian Companies Act 2013

How to Rectify the name of a Company? Section 16 of Indian Companies Act 2013

Is it necessary to give copy of Memorandum, Articles etc to members? Penalty in case of default. Section 17 of Indian Companies Act 2013

How to convert a Registered Company? Section 18 of Indian Companies Act 2013. Conversion of Companies already registered. Procedure and Documentation

Can subsidiary company hold shares of holding Company? Section 19 of Indian Companies Act 2013. Subsidiary Company not to hold shares of its holding Company

How to serve documents to a company or its officer? What are the accepted methods? Section 20 of Indian Companies Act 2013 Service of documents

 

 

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