Companies Act- Subsidiary/ Holding , Other Topics

[CA Rachit Agarwal]

As per Section 4 of the Companies Act, 1956 if the company holds more than 50% of the equity shares then such company would be holding company.

Whether Joint Venture company floated by different entities, and one venture partner holds more than 50%, then venture partner holding more than 50%, can it be termed as holding company.

Posts / Replies

[Surender Gupta]

What is the status of that Joint partner? Is it a company for the purpose of companies act, 1956 or is it a different person other than company?. Only a company under companies act, 1956 can be a holding company. Also be notes that company includes body corporate.