Section restricts the layers below holding company upto 2 layers. So Layers means both Vertical Layer & Horizontal Layer i.e. For Instants If A Ltd have 3 Subsidiary( B1 ltd. B2 ltd & B3 Ltd) and these subsidiary have further Subsidiarys then Section also restricts the No. of Vertical Subsidiary companies upto 2?

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Section restricts the layers below holding company upto 2 layers. So Layers means both Vertical Layer & Horizontal Layer i.e. For Instants If A Ltd have 3 Subsidiary( B1 ltd. B2 ltd & B3 Ltd) and these subsidiary have further Subsidiarys then Section also restricts the No. of Vertical Subsidiary companies upto 2?

Questions › Category: Co. Audit - I › Section restricts the layers below holding company upto 2 layers. So Layers means both Vertical Layer & Horizontal Layer i.e. For Instants If A Ltd have 3 Subsidiary( B1 ltd. B2 ltd & B3 Ltd) and these subsidiary have further Subsidiarys then Section also restricts the No. of Vertical Subsidiary companies upto 2?

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Nijal Koshti asked 5 years ago

Question Tags: Sec 2 Clause(87)- Subsidiary Company

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Ravi Staff answered 5 years ago

it only restricts vertical layers.
company can have any number of subsidiaries below it but vertical layer should not be more than 2