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.
From India, Delhi
From India, Delhi
Such kind of arrangement will be deemed as a camouflage arrangement and make the contract sham and invalid. Therefore, avoid such contracts
From India, Kannur
4193From India, Kannur
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.
From India, Mumbai
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.
From India, Mumbai
A subsidiary company can not engage a holding company as a contractor. Such contracts are invalid.
From India, Aizawl
From India, Aizawl
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
From India, Faridabad
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
From India, Faridabad
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