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In the Companies Act, 1956 there is no ward as ‘Wholly
Owned Subsidiary’ (WOS), WOS means a company of which
entire equity share capital is held by other Company.
For example A company holds entire equity shares of B
Company in this case B Company is WOS of A Company.
Question:
Now the Question is X company has paid up equity share
capital of Rs.50000 (5000 shares each of Rs.10).Out of
which Y company holds 4990 shares in its own name and
remaining 10 shares Y Company holds in its name in 10
different folios (one share in each folio) along with 10
different individuals in the style first name is of Y
limited and second (joint name) of individuals like
A,B , C…… to J.In such case will X limited be deemed to be
a WOS of Y Company ? If yes then how?
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