What is a subsidiary undertaking?
An undertaking that is controlled by another undertaking (the parent or holding company). The extent of the control needed to define a subsidiary is given in the Companies Act 1985. The financial statements of a subsidiary undertaking are normally included in the consolidated financial statements of the group.
What is the difference between a subsidiary and a subsidiary undertaking?
The definition of ‘parent and subsidiary undertaking’ is the basis for consolidated accounts for groups of companies. This is to be distinguished from the general definition of holding and subsidiary company used elsewhere in the Companies Acts, other legislation, and in contracts.
What are amounts owed by group undertakings?
Amounts owed by group undertakings are unsecured, have no fixed date of repayment and are repayable on demand. Amounts owed to group undertakings are unsecured, have no fixed date of repayment and are repayable on demand.
Can a subsidiary company be listed?
No, a subsidiary company cannot own shares in a parent company as per the Companies Act, 2013. According to the Companies Act, 2013 a subsidiary company by itself or through its nominee cannot hold shares in a holding company.
What is an undertaking?
Undertakings are a common part of the Court process, and are defined as a legal promise to do, or not do, something. An undertaking is a promise to the Court, and if you break it there are ways that it can be enforced.
What is undertaking under Companies Act 2013?
In this case, the Bombay court held that the word “undertaking” means any business or any work or any project in which one engages in or attempts as an enterprise similar to business or trade. The business and undertaking of the company must be differentiated by the properties which belong to the company.
What is a participating interest?
“(5A) A “participating interest” means an interest held in the shares of an undertaking by another undertaking or individual which is held on a long-term basis for the purpose of securing a contribution to the activities of the second undertaking or individual by the exercise of control or influence arising from or …
What happens when a subsidiary gets listed?
If it is listing via issue of new shares, the money comes to the listed company (i.e. the subsidiary). If it is listing via sale of existing shares, then those who are selling will get the proceeds. If the parent happens to be a seller, it will get the process by sale of share to the public.
What is the difference between holding and group?
A group structure gets created when one limited company owns another limited company. The limited company at the top of the structure becomes what is commonly known as a ‘holding company’. A holding company can have many different subsidiaries, that is, companies beneath it, that it controls.
What is the difference between an undertaking and an agreement?
An ‘undertaking’ is at the heart of a contractual agreement, covering the essential terms together with any incidental activities that either contracting party believes are needed to create the circumstances under which the contract will be performed.