Business Ethics and Corporate Governance, Second Edition

PYRAMIDAL STRUCTURES

The committee has also suggested that corporates should be allowed to maintain pyramidal corporate structures, that is, a company which is a subsidiary of a holding company could itself be a holding company. ‘We suggest that pyramidal structures should be allowed because it is in the interest of corporate sector, especially when many companies are making acquisitions abroad. Although the committee started its deliberations under the presumption that only one layer should be allowed, we later decided against it,’ J.J. Irani commented.