P is a parent undertaking of A if P has the power to exercise (or actually exercises) dominant influence or control over A, or if P and A are managed on a unified basis.
A wholly-owned subsidiary is a company whose only shareholder is its parent company.
The obligation to assist inspectors is not unlimited and extends only to what the persons are reasonably able to give. Failure to comply with demands beyond reasonable assistance does not amount to a breach of statutory duty.
No, a parent company is not responsible for the debts of its subsidiary.
A balance sheet is a statement of a company's financial position as at a specified date.
A company is a subsidiary of another if the other company is a member of it and controls the composition of its Board of Directors, owns more than half in nominal value of its equity share capital, or if it is a subsidiary of any company which is that other's subsidiary.
The Court can appoint an inspector if it is shown that the company's business is being conducted with intent to defraud creditors, for a fraudulent or unlawful purpose, in a manner oppressive to its members, or if it is in the public interest.
The principle is that the rights of one company in a group cannot be exercised by another company, even if the ultimate benefit would endure to the same person or corporate body.
A is considered a subsidiary undertaking of P if P is its parent undertaking within the meaning of section 3.
Group financial statements must include a consolidated balance sheet dealing with the state of affairs of the parent company and its subsidiary undertakings, unless excluded for good cause.
The term 'undertaking' refers to either a body corporate or partnership, or an unincorporated association carrying on a trade or business, with or without a view to profit.
Section 643(2) requires that the accounts of a holding company shall be consolidated accounts comprising a consolidated balance sheet.
The directors' emoluments, pensions, compensation for directors or past directors in respect of loss of office in the company or in its holding or subsidiary companies.
No, the legal personality of a holding company does not affect its subsidiary. Both enjoy distinct legal entities.
The court upheld the principle of Salomon v A Salomon and Co., stating that it is not free to disregard the principle of separate legal personality unless the facts of the case present sufficient grounds to justify departure from this general principle.
The court's position on treating a group of companies as a single economic entity, where Lord Denning pierced the veil of incorporation to treat DHN as the owners of the land, entitling them to payment of compensation.
Section 786 of the Companies Act, 2015 empowers the Court to appoint one or more inspectors to investigate the affairs of a company.
Group accounts dealing with the state of the affairs of the company and all its subsidiaries, and a consolidated profit and loss account dealing with the profit and loss of the company and those subsidiaries.
The main legal issue was whether Cape Industries Ltd could be held liable for the actions of its subsidiaries in the USA, specifically regarding asbestos-related illnesses contracted by factory workers.
The investigation is important because inspectors need to identify companies connected with the company under investigation to effectively carry out their duties.
Registration involves the initial process of forming a company and obtaining legal recognition, while conversion refers to changing the company's structure or type, such as from a private company to a public company, in accordance with the provisions of the Companies Act, 2015.
The plaintiffs argued that: (a) the subsidiaries were mere agents carrying on the business of their principal, Cape Industries Ltd; (b) Cape Industries Ltd and its subsidiaries were in reality one economic unit; and (c) the separate identities of the subsidiaries were merely a facade concealing the true facts.
Incorporation grants a company its own legal personality, allowing it to enter into contracts, sue and be sued, own property, and carry out business activities independently of its shareholders.
The distinction is critical in determining the respective statutory and contractual rights and obligations binding on bodies corporate, partnership firms, or unincorporated associations, and in regulating their legal relationship.
An undertaking is considered a parent undertaking if it holds a majority of the voting rights, has the right to appoint or remove a majority of the Board of Directors, exercises a dominant influence, or controls a majority of the voting rights.
A company is deemed to be another's holding company only if that other is its subsidiary.
Holding companies often create pyramids of interrelated subsidiaries, each theoretically a separate legal entity but part of a larger business undertaking or group enterprise.
A profit and loss account summarizes the income and expenditure of the company over a specified accounting period, and the profit or loss of the parent company and its subsidiary or subsidiaries in respect of that accounting period.
Devlin LJ emphasized that even though two persons are separate in law, one can be under the control of the other to such an extent that they constitute one commercial unit.
After Abid's death, his wife Abida, who had little knowledge of the business, sought to manage the company's assets and instituted suits against some of the debtors, having obtained letters of administration to her deceased husband's estate.
Section 108 prohibits a body corporate from being a member of a company that is its holding company.
The Companies Act, 2015 defines a subsidiary company with reference to its holding company's voting rights and power to determine the structure and composition of the Board of Directors of the subsidiary.
A company is a subsidiary if the other company holds a majority of the voting rights in it, is a member and has the right to appoint or remove a majority of its Board of Directors, controls a majority of the voting rights under an agreement with other members, or is a subsidiary of a company that is itself a subsidiary of that other company.
Incorporation refers to the process of legally declaring a corporate entity as separate from its owners. This process involves registering the company with the relevant authorities, thereby granting it legal personality.
An undertaking is considered a parent undertaking if it has the power to exercise (or actually exercises) dominant influence or control over another undertaking, or if it and the subsidiary undertaking are managed on a unified basis.
The allotment or transfer of shares in a company to its subsidiary is void except when the subsidiary acts as a personal representative or trustee of its holding company.
Incorporation provides a company with the capacity to act as a legal entity, meaning it can engage in legal activities such as entering into contracts, owning assets, and being liable for its debts.
The types of undertakings recognized are subsidiary undertakings, fellow subsidiary undertakings, group undertakings, and parent undertakings.
Yes, a company can act as a personal representative or trustee of its holding company unless the subsidiary's holding company or any of its other subsidiaries is beneficially interested under the trust.
Details of advances and credits granted to the directors of the parent company by that company or by any of its subsidiary undertakings, and guarantees of any kind entered into on behalf of the directors of the parent company by that company or by any of its subsidiary undertakings.
A register of its directors and secretary containing their respective particulars as are prescribed under the Act.
The allotment or transfer of shares to a company's subsidiary is void because it makes no business sense for a company to allot its shares to another company in which it holds shares, as this is tantamount to investing in itself.
A wholly-owned subsidiary is a company that has no members except the holding company, which holds all the shares and determines the composition of its Board of Directors.
