Advertisements
Advertisements
Question
Explain the following term/concept.
Holding company
Solution
(1) A company which controls the management of another company is called the ‘Holding Company’. The company which is controlled by another company is termed as a ‘Subsidiary Company’.
(2) A holding company holds more than 50% of the total share capital of subsidiary company and has powers to appoint or remove all or the majority of directors of the subsidiary company.
APPEARS IN
RELATED QUESTIONS
Short Answer Question
What is public company?
Correct the underlined word and rewrite the following sentence.
A Subsidiary Company holds more than half of the total share capital of another company.
Correct the underlined word and rewrite the following sentence.
A public Company can have maximum 200 Membesrs.
Explain the following term/concept.
Company limited by guarantee
Explain the following term/concept.
Perpetual Succession
Explain the following term/concept.
Listed company
Study the following case/situation and express your opinion.
Two promoters got ‘Super Drinks Pvt. Ltd.’ incorporated on 18th Jan, 2018. The company has 100 members as on 31st Mar, 2019.
a) What is the maximum number of members this company can have?
b) Can this company invite the general public to subscribe for shares?
c) Can the shareholders of the company sell its shares to outsiders?
Study the following case/situation and express your opinion.
Kali VFX Ltd. was incorporated on 1st Jan, 2019 as a public limited company.
a) How many minimum number of members must be there in this company?
b) Can the members of this company sell its shares to outsiders?
c) How many maximum number of members can this company have?
Study the following case/situation and express your opinion.
On 1st Jan, 2018 Mr. John bought 100 shares of TIPS Paints Ltd. The face value of each share was Rs. 10. Mr. John paid the full amount of Rs. 1000. In Dec, 2018 the company suffered a loss of Rs. 10 crores.
a) Can the company ask Mr. John to pay any further money to the company?
b) Which feature of a Joint-stock company is referred to in this example?
c) Explain the feature briefly.
Distinguish between the following:
Sole Trading concern and Joint Hindu Family Business.
What is meant by Limited liability?
What is meant by Chartered Company?
What is meant by Foreign Company?
What is meant by a Multi-National Company?
Securities Premium Reserve collected by the company can be used for ______.
Restricts the right to transfer of shares for ______.
Minimum number of members in a Private Company ______.
