6)Kapila Limited issued equity shares of `1,00,000 (10,000 shares of ` 10 each) on 01.04.2021 which have been fully subscribed, whereby Kusha Limited holds 4000 shares and Prem Limited holds 2000 shares in Kapila Limited. Kapila Limited is also holding 20% equity shares of Red Limited before the date of issue of equity shares stated above. Red Limited controls the composition of Board of Directors of Kusha Limited and Prem Limited from 01.08.2021. Examine with relevant provisions of the Companies Act, 2013:
(i)Whether Kapila Limited is a subsidiary of Red Limited?
(ii)Whether Kapila Limited can hold shares of Red Limited?

Answer rating: 100% (QA)

Answer This given problem is based on subclause 87 of Clause 2 read with section 19 of the Companies Act 2013 As per subclause 87 of Clause 2 of the C... View the full answer