Forums
Back
Holding and subsidiary Doubt
Corporate & Other Laws
What's the answer to this question Can you please explain
Answers (1)
Best Answer
Option B. JBR Limited is subsidiary of JPR Limited. As per Sec 2(87), subsidiary company in relation to holding company, means a company in which holding company 1. Controls the composition of the Board of Directors; or 2. Exercises or controls more than one-half of the total voting power either at its own or together with one or more of its subsidiary companies. Here, subsidiaries of JPR Limted hold 30% each in JBR Limited, while JPR itself holds 20% which totals to 80%.
Your Reply