RESTRICTION ON THE NUMBER OF LAYERS OF SUBSIDIARIES

Published On: 01/10/2017

Practice Area: Corporate & Commercial

Authors:

Kartik Ganapathy
Sanjana Ramkumar
The Ministry of Corporate Affairs notified the Companies (Restriction on Number of Layers) Rules, 2017 (the 'Rules') on September 20, 2017. The Rules have been issued pursuant to Section 2 (87) of the Companies Act, 2013 (the 'Act'), which provides the Central Government the power to cap the number of layers of subsidiaries that a company may have.