(i) Oakwood Private Limited is the holding company of Silveroak Private Limited. As per the last profit and loss account for the year ending 31st…

(a) (i) As per section 2 (85) of the Companies Act, 2013, Small Company means a company, other than a public company: (i) paid-up share capital of which does not exceed four crore rupees, and (ii) turnover of which as per profit and loss account for the immediately preceding financial year does not exceed forty crore rupees: Provided that nothing in this clause shall apply to — (A) a holding company or a subsidiary company; (B) a company registered under section 8; or (C) a company or body corporate governed by any special Act. In the instant case, as per the last profit and loss account for the year ending 31st March, 2025 of Silveroak Private Limited, its turnover was to the extent of 1.80 crore, and paid-up share capital was 80lakh. Though Silveroak Private Limited, as per the turnover and paid-up share capital norms, qualifies for the status of a ‘small company’ but it cannot be categorized as a ‘small company’ because it is the subsidiary of another company (Oakwood Private Limited). Hence, the contention of the Company Secretary is correct. (ii) (A) Perpetual Succession – A company on incorporation becomes a separate legal entity. It is an artificial legal person and have perpetual succession which means even if all the members of a company die, the company still continues to exist. It has permanent existence. The existence of a company is independent of the lives of its members. It has a perpetual succession. In this problem, the company will continue as a legal entity. The company's existence is in no way affected by the death of all its members. (B) The statement given is incorrect. A company is an artificial person as it is created by a process other than natural birth. It is legal or judicial as it is created by law. It is a person since it is clothed with all the rights of an individual. Further, the company being a separate legal entity can own property, have banking account, raise loans, incur liabilities and enter into contracts. Even members can contract with company, acquire right against it or incur liability to it. It can sue and be sued in its own name. It can do everything which any natural person can do except be sent to jail, take an oath, marry or practice a learned profession. Hence, it is a legal person in its own sense.