WHOLLY OWNED SUBSIDIARY…FORMALITIES TO BE COMPLIED WITH... BY INDIAN LISTED COMPANY

[Renu Kamra]

Dear Members,

What is the procedure to be followed by a Listed Company to make a company as its WHOLLY OWNED SUBSIDIARY…? The compliances w.r.t. SEBI, STOCK EXCHANGES, COMPANIES ACT & any other incidental formalities…   

Kindly respond with the respective Sections & Clauses (If any).,

Regards

Renu Kamra  

[Deepesh Nayak]

Dear friends,

Please also added my query. What is the definition of "WOS" ??

When we can say to a Company as wholly owned subsidiary of another Company.??

I know that 100% holding criteria has prescribed in the law, but whether there is any other criteria to become a WOS of another.???
 

Regards,
Deepesh

Thanking you,

*CS Deepesh Kumar Nayak*
 Company Secretary
 STI India Limited
 Indore (Madhya Pradesh)
*Mob. 097134-80215*
*csdeepe...@gmail.com*

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[Venkat Ragavan]

Definition of 'Wholly Owned Subsidiary'

A company whose common stock is 100% owned by another company, called the parent company. A company can become a wholly owned subsidiary through acquisition by the parent company or spin off from the parent company. In contrast, a regular subsidiary is 51 to 99% owned by the parent company. One situation in which a parent company might find it helpful to establish a subsidiary company is if it wants to operate in a foreign market. This arrangement is common among high-tech companies who want to retain complete control and ownership of their technology.

Wholly owned subsidiaries allow the parent company to retain the greatest amount of control, but also leave the parent with all the costs and risks of full ownership. When a lesser number of costs and risks are desirable, or when it is not possible to obtain complete or majority control, the parent company might introduce an affiliate, associate or associate company in which it would own a minority stake.

[Renu Kamra]

[Deepesh Nayak]

Thanks you sir,

Actually it has come to my knowledge that there is no only criteria of 100% shareholding to become a Wholly Owned Subsidiary of another Company. If Company A hold shareholding of  73.23 % in another Company B, then whether the said B will be termed as WOS of Company A.??

Please also suggest to Ms. Renu on her query.

Regards,
Deepesh

Thanking you,

*CS Deepesh Kumar Nayak*
 Company Secretary
 STI India Limited
 Indore (Madhya Pradesh)
*Mob. 097134-80215*
*csdeepe...@gmail.com*