Company Law Myth-Busting: Section 90's 'Holding Company' Conundrum
company ailet beginner agree_disagreeI'm surprised how many students get this one wrong. 'Section 90 of the Companies Act, 2013 says a holding company can't have as its subsidiary, a company carrying on the principal business of the holding company.' But what if the principal business of the holding company is finance or an intermediary? Does that mean the holding company can have a finance company as its subsidiary? No, it doesn't. Here's the catch - the principal business of the subsidiary must, by nature, be the same as the principal business of the holding company. So, if the holding company's principal business is finance, the subsidiary can't have its principal business as, say, manufacturing. It's about the nature of the business, not just the type.
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Maine yaha section 90 ka reference karte hue baat ki thi. Mere vichar mein, holding company ka matlab hai ki waha ek company hoti hai jiska share holding doosri company ke paas hota hai. Lekin yeh ek jatil samasya hai aur kai jagah iska uddharan nahin kiya gaya hai. Hum discussion mein iss samasya ka uddharan karne ke liye kuch naye points add kar sakte hain.
"Bhai, agar aap Section 90 ka vishleshan karte hain toh humein kuchh baatein samajhni pad rahi hain. 'Holding Company' ka matlab nahin hai ki woh aamtaur par ek kamjor company hai. Woh ek prabandhan company hai, jo apne subsidiary companies ka prabandhan karta hai. Isse to yeh pata chalta hai ki Section 90 me ek holding company ki kya bhoomika hai.