Scribd Logo
Upload

Welcome to Scribd!

  • 1 views

    Book - Company Law & Practices-110

    Uploaded by

    shivanshvegipro

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd

    Book - Company Law & Practices-110

    Uploaded by

    shivanshvegipro
    1 views1 page

    Copyright

    © © All Rights Reserved

    Available Formats

    PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    1 views1 page

    Book - Company Law & Practices-110

    Uploaded by

    shivanshvegipro

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    of 1

    EP-CL&P Legal Status and Types of Registered Companies

    Secondly, it can assist in raising capital based on the consolidated financial strength of its subsidiaries, which
    otherwise could be difficult for each individual subsidiary company. Flexibility to reorganize and structure
    finances is also available for individual businesses. Another key advantage of a holding company structure
    is that while it allows investment in multiple businesses under one parent company, it also ring-fences each
    business from the risks of the other, by preventing the business performance of one business from affecting the
    performance and valuation of another. For investors, this offers the option to gain an exposure to any preferred
    business along with the flexibility to structure the investment (as debt, equity etc.) to meet their investment
    objectives.

    Clause (46) of section 2 of the Companies Act, 2013 states as under:


    A “holding company” in relation to one or more other companies, means a company of which such companies
    are subsidiary companies.
    Explanation: For the purpose of this clause, the expression “Company” includes anybody corporate.

    70

    You might also like