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    Holding of shares of Holding Company by Subsidiary Company

    Posted By : Juhee Goyal / Published on : 22-Apr-2023 04:12 AM / View : 208 / Comment : 1

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    Hi Friends!

    Can subsidiary company hold shares in its holding company?
    Read more on : company holding subsidiary shares

    • Definatly not. 

      Section 19 of the Companies Act, 2013, states that a subsidiary company cannot hold shares in its holding company, and any such holding shall be void, except in the following circumstances:

      (a) where the subsidiary company holds such shares as the legal representative of a deceased member of the holding company; (b) where the subsidiary company holds such shares as a trustee; or (c) where the subsidiary company is a shareholder even before it became a subsidiary company of the holding company.

      It is important for companies to comply with these provisions to ensure that their shareholding structure is in line with the law. Any non-compliance with the provisions of the Companies Act, 2013, could result in penalties or legal consequences.

      22-04-2023 / 10:46:28 AM
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