ICSI Recommendations on Companies Law Committee Report, 2016
MCA may either relook the proposed amendment in context of ease of doing business or give the shelter as provided in section 4(7) of the Companies Act, 1956.
Justification: By adding explanation, a private company subsidiary of Foreign body corporate would become subsidiary of Public Company and with the amendment, compliances and complexes would increase.
MCA may relook the recommendation with regard to omitting the proviso to Section 2(87) dealing with restrictions on number of layers of subsidiaries.
This power may be retained by the Ministry which may be exercised in the times to come. As of now, MCA has not prescribed any restriction on limits of subsidiary.
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Source- ICSI
