Need information on how to form a holding company, basically procedures to form a holding company and seperate the operating part as a subsidary entity.
Raman K Sood (CS/LAW) 15 December 2010
Holding and Subsidiary Companies
A Company shall be deemed to be subsidiary of another if the other company controls the composition of the Board of directors of the former; or the other company exercises or controls more than half of the total voting power of the former where that former company was incorporated prior to the commencement of the Companies Act, 1956 in which the holders of the preference shares issued prior to such commencement have the same voting rights as equity shares; or the other holds more than half in nominal value of the equity shares of the former; or the former company is a subsidiary of any other company which is the subsidiary of the other.
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