Difference between 'Associated Companies' and 'Subsidiaries'
company mh_cet_law intermediate doubtYaar samajh nahi aaya, koi bata sakta hai? Main Company Law ke chapter 5 ka concept of 'associated companies' aur 'subsidiaries' samajh raha hu, lekin bas yeh samajh nahi aaya ki dono ka kya farq hai. Pehla article 31 mein associated companies define kiya gaya hai jaisa ki "body corporate in which control...exists if such body corporate is a subsidiary of, or under the control of the company or a holding company of the company"...bas aisa lagta hai ki subsidiary or holding company hi nahi, jaisa ki subsidiary hai.
Lekin article 89 mein subsidiary define kiya gaya hai...body corporate whose Articles or a Memorandum empower another body corporate to control the composition...of its Board of Directors or its policy decisions...yaar!
2 comments
2 Comments
Sign in to join the discussion.
Dude, the distinction between associated companies and subsidiaries is often debated, especially when it comes to accounting standards. In my opinion, the main difference lies in the degree of control exercised by the parent entity. Associated companies have a significant influence but no control, whereas subsidiaries have control over the operations. Anyone else think so, or have a different interpretation?
Agar aapko difference ki jarurat hai Associated Companies aur Subsidiaries ke beech, toh yeh hai: Associated Companies mein control ka presence nahin hota, par Subsidiaries mein Company ka full control hota hai. Jab ek Company ki majority shares hold karta hai, toh vah Subsidiary ho jata hai. Lekin jab do Companies ek doosre ko support karte hain, toh vah Associated Companies banti hain.