def ness the term 'turnover' as tenanting the aggregate value of the realization made from the sale, supply or distribution of goods,
INCORPORATION OF A COMPANY 55
still relevant in the case of a private company No-hit may become a subsidiary of a public contain by virtue of the latter company being able to control the major’s composition of its }board of Directors without holding the controlling interest m its shares (see details under the deducting of - Subsidiary Company' discussed -earlier).
.Section 43A sub-section (1) provides that company would be deemed to be a public company where 25 per cent or more of its paid-up share capital (whether preference or equity) is held by one or more public companies or private compel lies which had become public emperies by Virtue of this Section (i.e., Sec. 43A); and would be subject to the same restrictions and limitations as are applicable to public companies, of course with certain exceptions However, in computing the above percentage, shares held by a ban company shall not be taken into account in the
Cases. (a) where the shares are held as a trustee of some trust not being a case where shares are held as a trustee for the benefit of any body corporate; or
(b) where the shares are held as, or on behalf of, an executor or administrator of a deceased person to whom such shares belonged and It
shares have not been bequeathed by will to anybody corporate by the deceased 2. Section 43A sub-second (IA) provides that a private cotr.panyhsing an average -annual turnover of fen core rupees or r ore during the period of tlueeconsecutiveftnancialyearscc shall become public company, on the form the expire of a period of three months from the last day of the third financial year of the relevant penned' during which the pi i v ate company had the said average annual 'turnover'.
Explanation (b) def ness the term 'turnover' as tenanting the aggregate value of the realization made from the sale, supply or distribution of goods,
53 'S :-SECRETARIAL PRACTICE
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