Pl. clarify the following matter with case laws, if any -
1. A is having 27% shareholding in B and 51% in C whether C can be construed as group co. of B under Foreign Trade Policy.
2. A is Subsidiary co. of B, B is subsidiary of C whether C can be construed as group co. of A under Foreign Trade Policy.
Definition as given in Foreign Trade Policy is as under -
|Group Company" means two or more enterprises which, directly or indirectly, are in a position to —
(i) exercise twenty-six per cent. or more of the voting rights in the other enterprise; or
(ii) appoint more than fifty percent, of the members of the board of directors in the other enterprise; or
For the group companies to claim benefits or have their exports counted for benefits to be claimed by another member of the group, the group company should have been in existence atleast 2 years prior to the date of application under any of the export promotion schemes notified in the Policy."