XYZ Company Limited with a paid up share capital of Rs 45 lakhs and annual turnover of Rs 175 lakhs ...........

Companies Act-Phase (I & II) Introduction to Company Act

XYZ Company Limited with a paid-up share capital of Rs. 45 lakhs and annual turnover of Rs. 175 lakhs is a wholly owned subsidiary of ABC Limited a listed company. Can XYZ be called a Small Company:

Yes, as paid up capital and annual turnover of XYZ limited not exceed the limit as specified under the definition of small company

No, as XYZ company is wholly owned subsidiary company

No, as paid up capital and annual turnover of XYZ limited exceed the limit as specified under the definition of small company

None of the above

छोटे Courses बड़े Results

Master Introduction to Company Act

Prepare through Micro-courses

Try Now

Explanation:

As per proviso to Section 2(85) of Companies Act, 2013, a holding or a subsidiary company or section 8 companies can never enjoy the privileges of a small company even though they may fulfill the capital or turnover requirements of a small company.