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    associate company Section 2(6) Companies Act, 2013

    Posted By : neetu chauhan / Published on : 24-Jun-2022 09:14 AM / View : 335 / Comment : 1

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    Dear Folks,

    Greetings!!

    M/s S ltd is subsidiary of M/s H ltd, and M/s A Ltd is associate company of M/s S Ltd, Can it be concluded that M/s A Ltd is associate company of M/s H Ltd?

    Keenly waiting for Replies,

    Thank you
    Read more on : companies section company associate

    • (6) "associate company", in relation to another company, means a company in which that other company has a significant influence, but which is not a subsidiary company of the company having such influence and includes a joint venture company.

      12[Explanation.—For the purpose of this clause,—

      (a) the expression "significant influence" means control of at least twenty per cent. of total voting power, or control of or participation in business decisions under an agreement;

      (b) the expression "joint venture" means a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement;]

      08-09-2022 / 07:54:17 AM
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