Applicability of Sec372A
This query is : Resolved
05 July 2010
A private limited company is converted into public company on 31.03.2010...
Intercorporate Investment were already exceeds the limit of Sec. 372A when it was private company..
Thus 372A was not applicable when it was private company, so no SR were required.. but now it become public company, so whether SR is required for OLD INVESTMENTS ?? if required, then what will be the maximum time limit for this SR ??
Sec 372A says,
(1) No company shall, directly or indirectly,-
(a) make any loan to any other body corporate:
(b) give any guarantee, or provide security, in connection with a loan made by any other person to , or to any other person, by any body corporate: and
(c) acquire by way of subscripttion, purchase or otherwise the securities of any other body corporate,
exceeding sixty percent of its paid -up share capital and free reserve, or one hundred percent of its free reserves, whichever is more
But in this case, the company is neither going to make loan or to give guarantee nor acquiring securities. Act is silent about previous investment's approval.
please give me the reference of ur answer...
Thanks in advance...
Intercorporate Investment were already exceeds the limit of Sec. 372A when it was private company..
Thus 372A was not applicable when it was private company, so no SR were required.. but now it become public company, so whether SR is required for OLD INVESTMENTS ?? if required, then what will be the maximum time limit for this SR ??
Sec 372A says,
(1) No company shall, directly or indirectly,-
(a) make any loan to any other body corporate:
(b) give any guarantee, or provide security, in connection with a loan made by any other person to , or to any other person, by any body corporate: and
(c) acquire by way of subscripttion, purchase or otherwise the securities of any other body corporate,
exceeding sixty percent of its paid -up share capital and free reserve, or one hundred percent of its free reserves, whichever is more
But in this case, the company is neither going to make loan or to give guarantee nor acquiring securities. Act is silent about previous investment's approval.
please give me the reference of ur answer...
Thanks in advance...
05 July 2010
The Company should enhance its limits as soon as possible. The ROC will not question the earlier investments. However, the company would not be able to make any new investments. Hence, the best course of action would be enhance the limits suitably.
05 July 2010
wat does it mean by enhancing the limit?
06 July 2010
Increasing the limits by passing a special resolution at AGM. If listed company, then postal ballot.
06 July 2010
Increasing the limits by passing a special resolution at AGM. If listed company, then postal ballot.
26 March 2012
answer is still not clear to me.. please explain it in little detail..
05 November 2012
No Question About Earlier Investment.
No SR Required for Earlier Investment.
No SR Required for Earlier Investment.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- STCG....................................................
- Section 54F - Exemption on LTCG in 2026 for HP purchased in 2023
- TAN for Partnership
- Sales return eway bill
- AMOUNT RECEIVED UNDER COMPULOSRY ACQUISITION OF AGRICULTURAL LAND
- Is E Way Bill Valid If Transport ID Not Mentioned in PART A But Vehicle details mentioned in PART B
- GST Registration Horse racing
- Small dealers gst returns filing
- Section 43B(h) – MSME Invoice Paid Before Year End but After 45 Days
- CA IPCC Registeration in 2012, Is my registration Active or Expired
- Free lancer income
- Long Term Service award taxability in hands of company
- Standard Deduction claim for EPFO Pension and ICICI Prudential Life Annuity
- Sales amount in Gstr1
- CG after sale of flat
- E Commerce GSTR1 & 3B how to file
- Nomination of Bank for refund in itr 2
- GST Cancellation without jurisdiction
- Legal Opinion on Registrar's Refusal to Investigate a Society for Non-Renewal and Non-Compliance
- GST Refund_RFD-01
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
Subscribe to Pro
Join an elite circle of professionals
CAclubindia
