Companies Act, 1956
Section - 581ZL - Investment in other companies, formation of subsidiaries, etc.
Investment in other companies, formation of subsidiaries, etc.581ZL. (1) The general reserves of any Producer Company shall be invested to secure the highest returns available from approved securities, fixed deposits, units, bonds issued by the Government or co-operative or scheduled bank or in such other mode as may be prescribed (2) Any Producer Company may, for promotion of its objectives acquire the shares of another Producer Company.(3) Any Producer Company may subscribe to the share capital of, or enter into any agreement or other arrangement, whether by way of formation of its subsidiary company, joint venture or in any other manner with any body corporate, for the purpose of promoting the objects of the Producer Company by special resolution in this behalf.(4) Any Producer Company, either by itself or together with its subsidiaries, may invest, by way of subscription, purchase or otherwise, shares in any other company, other than a Producer Company, specified under sub-section (2), or subscription of capital under sub-section (3), for an amount not exceeding thirty per cent of the aggregate of its paid up capital and free reserves:Provided that a Producer Company may, by special resolution passed in its general meeting and with prior approval of the Central Gove .... To read the full section download the app from Google Play store
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