HOLDING AND SUBSIDIARY COMPANY

SUBSIDIARY COMPANY

          A company or body corporate shall be subsidiary of another if;

1.     that other company or body corporate directly or indirectly

·        controls, beneficially own or hold more than 50% of its voting securities

·        otherwise has power to appoint or elect more than 50% of its directors,

2.     the first mentioned company or body corporate is the subsidiary of any company or body corporate which is that others subsidiary

note:-

If central depository holds more than 50% of the voting securities of a company, such company shall be deemed to be the subsidiary of the central depository, save when such securities are held by central depository in its own behalf.

HOLDING COMPANY:-

A company shall be deemed to be another’s holding company if, but only if, that other is its subsidiary.