AOA
Kindly help me in the following matter
'A' and his/her spouse 'B' holds 70% (30+40) in a listed company 'ABC' and none holds office of Director/CEO in ABC.
ABC holds 49% shares in a Private Limited Company 'XYZ'.
A and B holds 27% shares in XYS.
What is relation between ABC and XYZ (i.e. subsidiary or associate) in respect of Companies Ordinance, 1984 and under IAS/IFRS for accounting treatment.
Regrads
Amir
XYZ is an associate of ABC.
Asalaam o Alaikum
My Dear Bro..
Subsidiary is those company where the parent have obtained 50 % or more VP (Either Appoint Director Ship of that company, Govern Financial or Operating Policy or Acquired Shares 50% or More)
However Associate are those company where the parent company made investment below from 50% and has not authority to govern financial or operating policy in such company.
If any confusion then contact again.
Regards
Umar.
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by chmamir</i>
<br />AOA
Kindly help me in the following matter
'A' and his/her spouse 'B' holds 70% (30+40) in a listed company 'ABC' and none holds office of Director/CEO in ABC.
ABC holds 49% shares in a Private Limited Company 'XYZ'.
A and B holds 27% shares in XYS.
What is relation between ABC and XYZ (i.e. subsidiary or associate) in respect of Companies Ordinance, 1984 and under IAS/IFRS for accounting treatment.
Regrads
Amir
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">
XYZ can be treated as subsidiary of ABC as the direct and indirect (through associates) holding together makes-up the 'control' that ABC can exercise on XYZ.
Section 3 of the Companies Ordinance, 1984 accounts for 'direct' and 'indirect' both sort of holdings to establish the holding/subsidiary relationship. Though the term 'indirect holding' is not defined, yet, it encompasses the holding through associates, other subsidiaries or directors.
Pls keep in mind that 'A' and 'B' are "associates" of the ABC under the difinition provided by the Companies Ordinance, 1984 regardless that they are not directors/CEO etc.
Regards,
AGREED...
<blockquote id="quote"><font size="1" face="Verdana, Arial, Helvetica, san" id="quote">quote<hr height="1" noshade id="quote"><i>Originally posted by kamranACA</i>
<br />XYZ can be treated as subsidiary of ABC as the direct and indirect (through associates) holding together makes-up the 'control' that ABC can exercise on XYZ.
Section 3 of the Companies Ordinance, 1984 accounts for 'direct' and 'indirect' both sort of holdings to establish the holding/subsidiary relationship. Though the term 'indirect holding' is not defined, yet, it encompasses the holding through associates, other subsidiaries or directors.
Pls keep in mind that 'A' and 'B' are "associates" of the ABC under the difinition provided by the Companies Ordinance, 1984 regardless that they are not directors/CEO etc.
Regards,
<hr height="1" noshade id="quote"></font id="quote"></blockquote id="quote">