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Is Secretarial Audit applicable to a private company which is a subsidiary of a public company?

Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 priya asked over 2 years ago

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 HIMANSHU answered over 2 years ago

•Section 2(71) of the Companies Act, 2013 defines a “Public Company as one (a) Which is not a private company; (b) Has a minimum paid-up share capital of five lakh rupees or such higher paid-up capital as may be prescribed. •The proviso to the definition states that “Provided that a company which is a subsidiary of a company, not being a private company, shall be deemed to be public company for the purposes of this Act even where such subsidiary company continues to be a private company in its articles. •By this definition, it can be inferred that Secretarial Audit would be applicable to a private company which is a subsidiary of a public company, and which falls under the prescribed class of companies.

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Picsjoin 2017224123730582 Archana answered over 2 years ago

Hie Priya, - Section 2(71) of the Companies Act, 2013 defines a “Public Company as one (a) Which is not a private company; (b) Has a minimum paid-up share capital of five lakh rupees or such higher paid-up capital as may be prescribed. - The proviso to the definition states that “Provided that a company which is a subsidiary of a company, not being a private company, shall be deemed to be public company for the purposes of this Act even where such subsidiary company continues to be a private company in its articles. - By this definition, it can be inferred that Secretarial Audit would be applicable to a private company which is a subsidiary of a public company, and which falls under the prescribed class of companies.

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Avatar 37a3bd7bc7328f0ead2c0f6f635dddf60615e676e6b4ddf964144012e529de45 megha answered over 2 years ago

Hello Priya, Section 2(71) of the Companies Act, 2013 defines a “Public Company as one (a) Which is not a private company; (b) Has a minimum paid-up share capital of five lakh rupees or such higher paid-up capital as may be prescribed. The proviso to the definition states that “Provided that a company which is a subsidiary of a company, not being a private company, shall be deemed to be public company for the purposes of this Act even where such subsidiary company continues to be a private company in its articles. By this definition, it can be inferred that Secretarial Audit would be applicable to a private company which is a subsidiary of a public company, and which falls under the prescribed class of companies. ------------------------------------------------------------------------

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