Meaning and definition of Associate Company as per the Companies Act, 2013 Section 2(6) of the Companies Act, 2013 as amended by the Companies (Amendment) Act, 2017 define an Associate Company as under: “An associate company, in relation to another company, means a company in which that other company has a significant influence, but which is not a subsidiary company of the company having such influence and includes a joint venture company....
While the Companies Act, 2013 introduced many new concepts in the corporate world. “Small Company” was one of such, which gained a lot of attention of stakeholders and has continued till date. Let it be from the point of compliances under the Companies Act or any other Act, identifying whether the company comes within the ambit of “small company definition” plays a very crucial role. In this article, we will try to understand “Small Company” and how it impacts a company as a whole....
What is a subsidiary company? In simple terms, a subsidiary company means a company that is controlled by some other company, and that some other company or controlling company is called a holding company. To become a subsidiary the holding company must have control more than one half (i.e. more than 50%) of the total voting power or power to appoint or remover the majority of the Directors of such a subsidiary....