Explain the classification of the companies on the basis of control as per the Companies Act, 2013.

(a) (i) Listed company: As per the definition given in the section 2 (52) of the Companies Act,2013, it is a company which has any of its securities listed on any recognised stock exchange. Provided that such class of companies, which have listed or intend to list such class of securities, as may be prescribed in consultation with the Securities and Exchange Board, shall not be considered as listed companies. Whereas the word securities as per section 2 (81) of the Companies Act,2013 has been assigned the same meaning as defined in clause (h) of section 2 of the Securities Contracts (Regulation) Act,1956. Unlisted company means company other than listed company. (ii) In line with the Companies Act,2013, following are the classification of the Companies on the basis of control: (a) Holding and subsidiary companies: ‘Holding and subsidiary’ companies are relative terms. A company is a holding company in relation to one or more other companies, means a company of which such companies are subsidiary companies. [Section 2 (46) ] For the purposes of this clause, the expression “company" includes any body corporate. Whereas section 2 (87) defines “subsidiary company” in relation to any other company (that is to say the holding company), means a company in which the holding company — (i) controls the composition of the Board of Directors; or (ii) exercises or controls more than one -half of the total voting power either at its own or together with one or more of its subsidiary companies: Provided that such class or classes of holding companies as may be prescribed shall not have layers of subsidiaries beyond such numbers as may be prescribed. (b) Associate company [Section 2 (6) ]: In relation to another company, means a company in which that other company has a significant influence, but which is not a subsidiary company of the company having such influence and includes a joint venture company. Explanation. — For the purpose of this clause — (i) the expression “significant influence” means control of at least twenty per cent of total voting power, or control of or participation in business decisions under an agreement; (ii) the expression “joint venture’’ means a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets of the arrangement.