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Holding Company - Companies Law Ready Reckoner - Companies LawExtract As per section 2(46) of the Companies Act, 2013, unless the context otherwise requires, Holding Company , in relation to one or more other companies, means- a company of which such companies are subsidiary companies; Explanation. -For the purposes of this clause; the expression company includes any body corporate; Scope of Holding Company- As per BRS VENTURES INVESTMENTS LTD. VERSUS SREI INFRASTRUCTURE FINANCE LTD. ANR.- 2024 (7) TMI 1408 - SUPREME COURT A holding company and its subsidiary are always distinct legal entities. The holding company would own shares of the subsidiary company . That does not make the holding company the owner of the subsidiary's assets. In the case of Vodafone International Holdings BV6, this Court took the view that if a subsidiary company is wound up, its assets do not belong to the holding company but to the liquidator. As mentioned in the decision, the reason is that a company is a separate legal persona and the fact that the parent company owns all its share has nothing to do with its separate legal existence. Therefore, the assets of the subsidiary company of the corporate debtor cannot be part of the resolution plan of the corporate debtor.
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