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Proviso to clause 87 of Section 2 of companies act says the following:-
Provided that such class or classes of holding companies as may be prescribed shall not have layers of subsidiaries beyond such numbers as may be prescribed.
Now as per The Companies (Restriction on Number of Layers) Rules, 2017
Restriction on number of layers for certain classes of holding companies it carves out an exception which is as follows:
Provided that the provisions of this sub-rule shall not affect a company from acquiring a company incorporated outside India with subsidiaries beyond two layers as per the laws of such country
Now my query is can we float/incorporate a company outside India and that company can have more than 2 layers of subsidiary as per laws of that country.
since the rules specifically uses the word "Acquire" so can we incorporate a subsidiary company outside India also and can have more than 2 layers of subsidiary as per laws of that country is that allowed or not.
issue company subsidiary Can shareholder of an unlisted public company by way of private arrangement sell shares on partly payment basis. (i.e. shares sold in January and Agreed to receive 50% payment on the spot and rest after 6 months) and if yes whether any particular act prohibits these type of transactions, since these are not spot delivery contracts and as per SCRA, 1956 it only allows spot delivery contracts.
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