CLRA - Is there a prohibition for subsidiary company to engage holding company as contractor?

cs.smalhotra@gmail.com
Is there a prohibition for subsidiary company to engage holding company as contractor? Is there any prohibition under CLRA or under any other act. Could you please advise.
Madhu.T.K
Such kind of arrangement will be deemed as a camouflage arrangement and make the contract sham and invalid. Therefore, avoid such contracts
PRABHAT RANJAN MOHANTY
The subsidiary company can be a contractor. The CLRA Act prohibits engagement of workmen through contractor in certain works in any establishment.
If the subsidiary company is engaged as contractor and engaging workmen in core activities of the parent company shall be treated as a sham & camouflage contract.
rkn61
A subsidiary company can not engage a holding company as a contractor. Such contracts
are invalid.
shobhit-kumar-mittal
Sunny,
If the establishment of the subsidiary company is independent, having no financial integrality with the holding company, there is no bar in CLRA for engagement of contractors. However, the contractor should be duly licensed under CLRA
Madhu.T.K
This is the case of Holding company and its subsidiary company. How can anyone say that there will not be any financial integrality between the two. It is common that between these two there will be financial integrality.
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