Question

Jagruti (Pvt.) Ltd. is a private limited company as per the Articles of Association of the

company. However, a public company acquired shares in Jagruti (Pvt.) Ltd., thereby making it

(Jagruti (Pvt.) Ltd.) a subsidiary of that public company. State the provisions and impact of

such acquisition of shares by a public company on Jagruti (Pvt.) Ltd.​

Answer 1

Explanation:

Jagruti (Pvt.) Ltd. is a private limited company as per the Articles of Association of the

company. However, a public company acquired shares in Jagruti (Pvt.) Ltd., thereby making it

(Jagruti (Pvt.) Ltd.) a subsidiary of that public company. State the provisions and impact of

such acquisition of shares by a public company on Jagruti (Pvt.) Ltd.

Answer 2

The provisions and impact of acquisition of shares by a public company on Jagruti Pvt Ltd, will be held as per the Companies Act.

• A private company, which is also a subsidiary of a public company, is put in the same location. The foundation as that of a public corporation for the supply of businesses.
• Such public company status is given to a private company that  was originally incorporated as a private corporation. Thus, a public corporation is also a private company that is a part of a public company.
• It is also not necessary to increase the number of members to seven out of two or to amend the conditions laid down in the articles of association to fulfil the criteria set out in section 3(1)(3) of the Companies Act.