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
- GSTR-1A How to update Invoice
- Excess salary payment.
- Stamp Paper for partnership firm change new income tax 2025
- INTEREST APPLICABLE ON ITC REVERSAL PORTION
- Capital gain from sale of house property
- Current Account Opening for Sole Proprietorship with Udyam Certificate - Zero Turnover
- TDS on Purchase of Immovable Property by NRI from NRI
- Regarding TDS Applicability For Director Remuneration
- FORM 26A APPLICABILITY
- SFT Cash Deposit in Current Account
- TDS APPLICABILITY......
- Copyright software
- Cash gift by grand mother to her grand daughter
- Tax amount diff in Gstr1 and 3B in tax compare reports
- Tds on GST in connection with sale to public company
- Restoration of certificate of practice
- Regarding change in correspondence address in SSP portal
- No Compliences after incorporation
- USEFUL LIFE OF USED/SECOND HAND COMMERCIAL VEHICLES
- Claiming TDS deducted by builder on Hardship compensation and Corpus
Trending Online Classes
-
DT & Audit (Exam Oriented Fastrack Batch) - For May 26 Exams and onwards Full English
CA Bhanwar Borana & CA Shubham Keswani
CAclubindia
