group company or sister concern

[Shailesh Goyal]

Hi all

Can anyone define group company or sister concern? i mean what is the
criteria of defining two companies as group companies or sister
concern? Is it shareholding pattern or more or less same director?

Its very urgent.

Thanks in advance.

Regards

[ankit das]

It usually refers to a group company if common directors are involved in the business.  

--
ACS Ankit Das
E-mail:anki...@gmail.com  
Mob: +91-9701891816

[chakri hegde]

Group Company

One company is a group company with regard to another company if one of them is the subsidiary of the other or both are subsidiaries of the same holding company.

Sister Concern

If two companies are owned or controlled by the same entity or person (means top management remains the same for both the concerns), they are Sister Companies. Those two companies can exist anywhere in the world.

---------------------
With Best Wishes
Chakri G Hegde
Nissin Foods India Ltd.
Bangalore

[CS. Dattatri H M]

Dear Mr Shylesh,

There is no definition of these words in any statutes. These are the words
regularly used to identify 'closely net' companies either through
shareholding or for having same majority shareholders or management being
substantially same or controlled by same entity/group.

Thanks & Regards,

Dattatri

[shailesh goyal]

If A Ltd has 6 Directors and B Pvt. Ltd. has 5 Directors and only 2 directors are common in those companies then can it be regarded group companies or sister concern?

 

Or should i go for checking shareholding pattern of both the companies? further at the time of checking shareholding pattern wht % should be common?

 

Regards

[Vivek Hegde]

Dear Shailesh

 

Following is the definition of Group Company under FTP

 

9.28: Group Company" means two or more enterprises which, directly or indirectly, are in a position to —  

(i)      exercise twenty-six per cent. or more of the voting rights in the other enterprise;or

 (ii) appoint more than fifty percent, of the members of the board of directors in the other enterprise

 For the group companies to claim benefits or have their exports counted for benefits to be claimed by another member of the group, the group company should have been in existence atleast 2 years prior to the date of application under any of the export promotion schemes notified in the Policy.

Rgds

 

Koramangala, Bangalore-560034
Mob: 9019756940

[shailesh goyal]

it means, as far as voting rights are concerned, two companies can be said as group companies only when one enterprise has 26% voting right in ohter not otherwise.

 

What if, the shares of other company is not hold by the Company instead hold by the some shareholders of the Company.

 

Regards

[shailesh goyal]

Hi..

 

Can we take the reference of definition of group company given in MRTP Act, which has been repealed?

 

Regards