Whether two companies be said to be of same management
Querist :
Anonymous
(Querist) 30 December 2011
This query is : Resolved
Dear experts,
Consider the following scenerio
There are two companies A and B
Company A has two units one manufacturing Water pumps motors and other manufacturing Capacitors in a state.
Due to expiry of exemptions of sales tax in the state company A closed it manufacturing operation of water pumps in the state and shifted the manufacturing operation in state B which was giving that exemption. The other manufacturing unit of capacitors was given to company B on conducting basis under an agreement of owner and conductor.
Employees of Capacitor unit of company 'A' were given full and final settlement without gratuity and new appointment letter (of next date of resignation from company A)in company B were issued to the employees with a clause in appointment letter of company 'B' that for gratuity purpose their service will be treated as continuous
Also the two directors of company B are wives of two directors and promoters of company A
Now my question to experts is whether we can say that 1) Company 'A' and company 'B' belongs to same Management since Directors of both company are relatives
2) Employees of company A who got new appointment in company B without a single day break in their service are in continuous service of same management who controls both company
prabhakar singh
(Expert) 31 December 2011
What relation you have with these Companies??
Querist :
Anonymous
(Querist) 31 December 2011
Consider myself as employee of company 'A' in unit manufacturing capacitors earlier and now given new appointment in Company 'B'
