A company that owns substantial shares in another company to control management and operations by influencing its Board of Directors is known as ____________.
A company that owns substantial shares in another company to control management and operations by influencing its Board of Directors is known as ____________.
The correct option is A Holding Company
As per section 2(46) of the Companies Act, 2013, holding company, in relation to one or more other companies, means a company of which such companies are subsidiary companies.
A company is a subsidiary of another if and only if - That other company controls the composition of its Board of Directors; or That other
(i) Where the first mentioned company is an existing company in respect of which the holders of Preference shares issued before the commencement of this Act have the same voting Rights in all respect as the holders of Equity shares exercises or controls more than half of the total voting power of such company.
(ii) Where the first mentioned company is any other company, holds more than half in nominal value of its Equity share capitals. OR
(iii) The company is a subsidiary of any company which is that other companies subsidiary.
As per section 2(46) of the Companies Act, 2013, holding company, in relation to one or more other companies, means a company of which such companies are subsidiary companies.
A company is a subsidiary of another if and only if - That other company controls the composition of its Board of Directors; or That other
(i) Where the first mentioned company is an existing company in respect of which the holders of Preference shares issued before the commencement of this Act have the same voting Rights in all respect as the holders of Equity shares exercises or controls more than half of the total voting power of such company.
(ii) Where the first mentioned company is any other company, holds more than half in nominal value of its Equity share capitals. OR
(iii) The company is a subsidiary of any company which is that other companies subsidiary.
