SISTER CONCERN
Each of the sister companies operates separately and may have no
connection other than sharing the same parent company. Sister companies can be
quite different from each other, producing different products and marketing to
different audiences
Though no definition of sister concern given under Companies Act 1956 or Companies Act 2013
And the relation between its all
subsidiaries is of sister concern
AS
PER COMPANIES ACT 1956
(section 370 (1B))
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AS PER COMPANIES ACT 2013
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It means two bodies corporates includes the concern
incorporated outside India having same management where the control and
management are taken by a person or group of persons managing one or more organizations.
But does not include –
(i) A corporation sole
Explanation:
Corporation sole means only single unit incorporated office occupied by
single natural person. Sister concern which has its separate legal existence
apart from the persons forming it. It enjoys a completely different legal
status apart from its members.
Corporation
Corporation Sole Corporation Aggregate
(Occupied by Single (Occupied by Group of
Natural Person) Companies)
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It means two Body corporates, created by same parent
company of other subsidiaries and includes the concern incorporated outside India
having same management/ control
But does not include-
(i)
A co-operative society registered under any law
relating to co-operative societies; and
(ii)
Any other body corporate (not being a company as
defined in this act), which Central Government
may, by notification, specify in this behalf.
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