I have a query related to Section 4(7), 3(1)(iv)(c) and 4(1)(c), kindly consider the same...
A Pvt Ltd, WOS of a foreign company wishes to Incorporate its JV (Proposed Private company) with Local Company in the ratio 74% for X Pvt Ltd and 26% for local dealer. According to Section 4(7), X Pvt Ltd is Purely Private Company as 100% capital is held by Foreign Body Corporate and only one share is with A company, being nominee on the part of foreign corporate body.
As per section 3(1)(iv)(c) - Public Company means a company which is a private company which is subsidiary of a company which is not a private company.
That means according to section 3(1)(iv)(c), a private company which is Subsidiary of a private company is a purely private company.
As per section 4(1)(c), a company's subsidiary is also the subsidiary of its holding company.
Like A Lts is subsi of B ltd and b ltd is subsi of c ltd, so automatically A ltd id subsidiary of C ltd.
So the main question is:
That the Proposed JV Company, which will be the subsidiary of X Pvt Ltd (X Pvt Ltd is Wholly Owned subsidiary of Foreign Body corporate), what would be the status of Proposed JV Private Company, Purely private company or susidiary of public company ?
Response is awaited,
Thanks & regards,