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When Public Company is the holding company of private company, the private company is deemed to be public company. Is it possible for a private company to hold public company? If so what will be the impact.
Answers (11)
Lokesh Sirigiri
Yes. It is possible for a private company to hold public company. As the private company being a member of public company with major share, doesn't make any difference, for such company.
Then will the public company deemed to be a private companyâ?¦.
Thread Starter
Swetha SThen will the public company deemed to be a private companyâ?¦.
No. Even though private company is a holding company of public company, the public company existence continues to be public company.
Read about Tata Sons. You will have a good understanding. https://www.firstpost.com/business/govt-says-no-illegality-in-conversion-of-tata-sons-into-private-company-nclat-reserves-order-7856441.html
CA Suraj Lakhotia Admin
Read about Tata Sons. You will have a good understanding. https://www.firstpost.com/business/govt-says-no-illegality-in-conversion-of-tata-sons-into-private-company-nclat-reserves-order-7856441.html
One of the significant issue in private vs public is transferability of shares. The shares in public companies are freely transferable unlike in the case of a private company.
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