As on 1st August 2017, A Ltd had three layers of subsidiaries. Discuss: Whether any exemption is available to A Ltd?
CS Professional · Corporate Restructuring, Valuation and Insolvency · PYQS · December 2021
As on 1st August 2017, A Ltd had three layers of subsidiaries. Discuss: Whether any exemption is available to A Ltd?
Answer & Explanation:
Rule 2(2) prescribes exemptions from applicability of Companies (Restriction on Number of Layers) Rules, 2017 in the following cases: A banking company as defined in Sec 5(c) of the Banking Regulation Act, 1949; A non-banking financial company as defined in Section 45-1(f) of RBI Act, 1934 which is registered with RBI and considered as systematically important NBFC by RBI; An insurance company being a company which carries on the business of insurance in accordance with provisions of the Insurance Act, 1938 and IRDAI Act, 1999; A Government company referred in 2(45) of Companies Act, 2013.
Topics: Corporate Restructuring
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