https://www.taxtmi.com/caselaws?id=99672 A company is treated as a holding company where a legally enforceable arrangement gives it power to control the composition of another company's board of directors, including through nomination and co-option of directors. On that basis, an investment made after such control has arisen falls within the statutory exemption for a holding company's investment in its subsidiary and is outside the ordinary investment restriction and penal provision under the Companies Act, 1956. Where a criminal complaint is founded on the contrary assumption and the legal basis of the prosecution is unsustainable on admitted facts, inherent jurisdiction may be exercised to prevent abuse of process and secure the ends of justice; the complaint and consequent proceedings may be quashed. en-us Wed, 07 Jun 1978 00:00:00 +0530 Sat, 28 Jan 2012 12:32:19 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=99672 A company is treated as a holding company where a legally enforceable arrangement gives it power to control the composition of another company's board of directors, including through nomination and co-option of directors. On that basis, an investment made after such control has arisen falls within the statutory exemption for a holding company's investment in its subsidiary and is outside the ordinary investment restriction and penal provision under the Companies Act, 1956. Where a criminal complaint is founded on the contrary assumption and the legal basis of the prosecution is unsustainable on admitted facts, inherent jurisdiction may be exercised to prevent abuse of process and secure the ends of justice; the complaint and consequent proceedings may be quashed. Case-Laws Companies Law Wed, 07 Jun 1978 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=99672