Subsidiary company shareholding prohibited; limited exceptions for legal representative, trustee, or pre-existing holdings and voting rights restricted. The provision prohibits a subsidiary from holding shares in its holding company and renders any allotment or transfer of such shares to a subsidiary void, subject to exceptions where the subsidiary holds as legal representative of a deceased member, as trustee, or where it was a shareholder before becoming a subsidiary; voting by the subsidiary is permitted only for shares held as legal representative or trustee. For holding companies without share capital, references to shares are to be read as references to members' interests in whatever form.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Subsidiary company shareholding prohibited; limited exceptions for legal representative, trustee, or pre-existing holdings and voting rights restricted.
The provision prohibits a subsidiary from holding shares in its holding company and renders any allotment or transfer of such shares to a subsidiary void, subject to exceptions where the subsidiary holds as legal representative of a deceased member, as trustee, or where it was a shareholder before becoming a subsidiary; voting by the subsidiary is permitted only for shares held as legal representative or trustee. For holding companies without share capital, references to shares are to be read as references to members' interests in whatever form.
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