Class notes on the concept of groups of companies under the Companies Act , 2008

1. BUSINESS ENTERPRISE LAW
GROUPS OF COMPANIES
**NO SEPARATELEGAL PERSONALITYBUT IMPORTANTLEGAL ANDPRACTICALCONSEQUENCES
DEFINITION : SECTION 1- HOLDING COMPANY AND ALL ITS SUBSIDIARIES
HOLDING COMPANY: MUST CONTROL SUBSIDIARY COMPANY

2.  S 2(2) (a)
 HOLDING COMPANYMUST HAVE A SUBSIDIARY OR
 DIRECTLY OR INDIRECTLY CONTROLTHE EXERCISE OF MAJORITYVOTINGRIGHTS
 OR HAVETHE RIGHT TO APPOINT,ELECT , CONTROLAPPOINTMENTORELECTION
OF DIRECTORSWHO CONTROLTHE MAJORITYOF VOTES
 CAN ALSO MEAN INFLUENCEOF POLICY
VOTING RIGHTS – S 3(2) VOTINGPOWER ANDNOT NUMBER OF SHARES(SEE CONSIDERATIONS)
HOLDING COMPANY
SUBSIDIARY
S 3(1) (a)
See notes on control
for definition
WHOLLY OWNED
SUBSIDIARY
ALL GENERAL
VOTING RIGHTS ARE
HELD OR OWNED BY
HOLDING COMPANY