Holding Company and Subsidiary Company | Difference between Holding company and subsidiary company

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In this video-
Teacher's Name - CS Payal Popli
Topic - Holding and Subsidiary Company
Chapter 4 -Elements of Company Law
Subject - Legal Aptitude and Logical Reasoning
CSEET (ICSI)
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Holding and Subsidiary Company-
As per Section 2(87) “subsidiary company” or “subsidiary”, in relation to any other company (that is to say the holding company), means a company in which the holding company-
(i) controls the composition of the Board of Directors; or
(ii) exercises or controls more than one-half of the total share capital either at its own or together with one or more of its subsidiary companies:
Provided that such class or classes of holding companies as may be prescribed shall not have layers of subsidiaries beyond such numbers as may be prescribed.
Explanation.-For the purposes of this clause,-
(a) a company shall be deemed to be a subsidiary company of the holding company even if the control referred to in sub-clause (i) or sub-clause (ii) is of another subsidiary company of the holding company;
(b) the composition of a company’s Board of Directors shall be deemed to be controlled by another company if that other company by exercise of some power exercisable by it at its discretion can appoint or remove all or a majority of the directors;
(c) the expression “company” includes anybody corporate;
(d) “layer” in relation to a holding company means its subsidiary or subsidiaries;
COMPANY INCLUDES BODY CORPORATE:
As per Sec 2(87) Company include a ‘Body Corporate’.
As per Sec 2(11) body corporate includes a ‘Company incorporate out of India’.
Thus, an Indian company in which more than 50% shares are held by a foreign body corporate will be a ‘Subsidiary Company’.
Similarly, any Indian body corporate can be ‘holding company’ even if that body corporate is not registered as ‘company’ under company Act.
An Indian company can be holding/subsidiary of a foreign body corporate even if it is not registered as a Company.
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[@M_moderator]

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You are a excellent teacher.....no words more for your teaching style

[@Riavyas_17]

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[@padhakulog]

🥰

[@Mr.highthing25]

Present and past time me madam aap jaisa ko nhi pda rha hai Kyu ki aap ek topic uda ker pda ti hai aur ye ACH hai 😊 thanks u mam 🙏 👍

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Nice mam ur way of explaining company classification on the basis of independence is excellent

[@alinadeb9725]

Understood each and every point... Thanks a lot♥️

[@mohammednajmuddin1519]

Thanks for making me to understand about Susidiary and Holding Company....God Bless you Mam

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[@padhakulog]

❤️❤️

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Wow mam kitne ache se explained kiya thanku

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Outstanding Mam Very Well Explained 👍😊

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very nice you explain holding company and subsidiary company i can properly undrestand thank you soo much ❤😘

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Amazing concept .thank u so much ma'am 😘....

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Mam, keep it up. And provide lots of information to us . God will grace you. इसी तरह आप अच्छी-अच्छी वीडियोस बनाते रहिए और जिन लोगों को आपकी ही वीडियो समझ में आती है ऐसे लोगों को बेसब्री से इंतजार रहेगा.

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Hahahaha😛

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Appreciate You Mam Respect from Pak🇵🇰

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Wow i like the way u speak subsidiary company i literally loved that part😻

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Thank you for your kind explanation 😊

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[@padhakulog]

❤️❤️

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MashaALLAH Nice explanation.

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The right explaination i needed 😺

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Shaandar 👌

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Magical teacher 👩‍🏫‍

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Thank you ma'am

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Thank you mam for information 🙏🙏...from nepal

[@padhakulog]

❤️❤️

[@ananyadutta3710]

Ma'am, one thing that I want to rectify is that the holding company should have 51% or more shares in any other company to make that company his subsidiary. More than 50% can be 50.01%, but to become a holding company, the company needs to acquire 51% or more. Ma'am, I don't have any intention of making you feel bad. I genuinely respect you as well as your degree, but it's just something I understand after studying about this topic multiple times.

[@padhakulog]

✌️✌️✌️

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I am a CA student.. did you study from WhatsApp University .. jis teacher ko tum samjha rhi ho na vo cs hai .. ofcourse more educated then you so please apni galti ko maan ke use sudharo naaki teacher se lad jaao idiot.. kon padha rha hai tumhe? 😂😂

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Bahut acche se samjhya aapne

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❤️❤️

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Thank you❤

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Good Explanation ❤

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Mam voting power and composition of board of directors (dono jaruri hai ya ek chiz hi kafi hai)

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[@deepanshugarg4912]

mam have u uploaded the videos for other types of company also?

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Thank you..

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Thank you ma'am.

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Thank You.

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[@padhakulog]

❤️❤️❤️❤️

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Mam , difference between conglomerate company and holding company

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Thank you mam.

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[@krushnakanthulhale3890]

Mam to company preference share leke bhi holding company ban sakti hai na

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Mam Bcom part 2 ka Specialised Accounting pura padhao .

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Good explained

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Thanku so much mam🤗!

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Thank ma'am

[@akum5625]

thank you ma'am

[@rosh-]

so ma'am it means pqr co. is also holding co. of xyz , right ?