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sec 9 effect of registration
Corporate & Other Laws
answered on 04-Aug-25 16:42
if a subsidiary co. made any fault it will alone be liable is what in the video says but what if holding co. make any fault in the name of subsidiary co. made any fault . who will be liable in such a case?
latest answer
Hey everyone, Under Section 9 of the Companies Act, 2013, once a company is registered, it becomes a distinct legal entity, meaning it has its own identity, separate from its members, directors, or even its holding company. "The company shall be capable of exercising all the functions of an incorporated company and shall have perpetual succession and a common seal." In most cases, if a subsidiary is at fault, only the subsidiary is held liable and not the holding company. Therefore, the video correctly states that the subsidiary bears the consequences of its own actions. However, consideration must be given to scenarios where the holding company is responsible for the fault but acts through the subsidiary. In that case, the court may ‘lift the corporate veil’. This means that if it's proven that the holding company was using the subsidiary as a mere façade or sham, or to commit fraud or wrongdoing, then the holding company can be held directly liable. This is where concepts like "Piercing the Corporate Veil" come into effect. Courts don't allow companies to misuse the principle of a separate legal entity to escape liability. Example: If the holding company made false financial statements but published them under the subsidiary's name to avoid blame — and it’s proven — then courts can make the holding company liable. So, to sum up: Normally: A Subsidiary is liable for its own acts. Exceptionally: A Holding company can be liable if it uses the subsidiary fraudulently or illegally. Let me know what you think, or if you’ve seen real-life examples like this! If you are looking for deeper consultation, then reach out to industry experts like Setindiabiz or any other reliable name!
Harshavardini
CA Inter
★ 180
2
1K+
As15
Accountancy
answered on 07-Feb-24 11:36
1) If plan asset value is more than DBO, why it said the refund is in future ? Contribution is done next year ..hence Reduction in contribution or refund it’s supposed to be in the next year 2) Contribution each year is fixed ? Or it can changed each year based on actuarial estimate ?
latest answer
https://youtu.be/cMHP3h8CjAc?si=aeJ07ZWeigyqcCqV You can watch the full standard here.
Sushmita Chowdhury
CA Inter
★ 2K+
1
495
tally 9.0
Others
answered on 11-Feb-24 17:44
is this a part of ca inter syllabus?
latest answer
No , It's helpful for articleship !!
Harshavardini
CA Inter
★ 180
2
621
IND AS 19
Financial Reporting
answered on 07-Feb-24 11:12
Sir, why is the OCI entry in terms of actuarial gain or loss transferred to retained earnings directly and not to OCI ?
latest answer
It is taken to OCI.
Swathi Krishna
CA Final
★ 8K+
3
358
Study Material on Auditing
Auditing
answered on 07-Feb-24 10:18
Is Indiogolearn study material is sufficient for Auditing? In terms of Concept or do we need to refer ICAI mat also?
latest answer
Sufficient
Chandu vadla
CA Final
★ 11K+
1
370
Dividend
Corporate & Other Laws
answered on 07-Feb-24 18:39
Is this definition of interim dividend is correct or the word ' for any financial year ' is to be inserted after the word ' board of director '
latest answer
This
Atharv Sankliya
CA Final
★ 3K+
3
464
Valuation -material
Costing
answered on 08-Feb-24 20:54
In this question value of supply is taken as 800 But actually shouldn't we add packing charges too as per Section15(2) of CGST Act
latest answer
Ok
jasmin ameena
CMA Inter
★ 5K+
2
225
Exception For Due Deligence
Auditing
answered on 07-Feb-24 11:16
Mam Can we say Hostile Takeovers are exceptions for Due deligence ie they won't follow due deligence just simply take over?
latest answer
Hostile takeover is where the takeover is without the consent or approval of target company's BOD . The acquiring company will always try to get complete understanding of the target company regarding all matters concerned with their decision making. So it cannot be considered as an exception
Surya Prakash
CA Final
★ 19K+
1
423
Reverse charge mechanism
Indirect Taxation
answered on 12-Feb-24 17:09
What is the difference between business entity and regd. person liable to pay under RCM in the given entries. Actual doubt is that is business entity( which is unregd.) needs to get regd if it is covered under that entry( in which the recipient: business entity is liable to RCM)
latest answer
Ok
manideep martha
CA Final
★ 10K+
11
512
Illustration 15, 4th statement
Direct Taxation
answered on 07-Feb-24 21:46
That business is controlling from India , why not taxed fully amount instead of 1,00,000
latest answer
It is based on residential status and nature of income.
Shivashankar Jawai
CA Inter
★ 2K+
1
410