Investment in related party company
This query is : Resolved
20 July 2015
One of the pvt Ltd wants to invest in other pvt Ltd, it's related party... I have checked 185,186,188
185 - it's not against loan given
186 - I will be passing SR as it is crossing the required limits
188 - I will be passing ordinary resolution in general meeting.
Any other sections I need to check? Pls reply.
20 July 2015
Hi,
No, you are not checking correct section. Section 188 is for making specified transaction between related party (it does not include Investment).
In your case, only section 186 will be applicable. Hence, if your amount exceeds the limit given in this section, you are required to pass special resolution for the same.
Let me know for any further clarification.
No, you are not checking correct section. Section 188 is for making specified transaction between related party (it does not include Investment).
In your case, only section 186 will be applicable. Hence, if your amount exceeds the limit given in this section, you are required to pass special resolution for the same.
Let me know for any further clarification.
21 July 2015
Hi Pratik,
Thanks for your reply.. what is Sec 188 (1)(g) then? - "underwriting the subscription of any securities or derivatives thereof, of the company."
Also the investor company's 2 Directors (out of 3) & all Shareholders are NRIs. will it affect anyways?
Thanks for your reply.. what is Sec 188 (1)(g) then? - "underwriting the subscription of any securities or derivatives thereof, of the company."
Also the investor company's 2 Directors (out of 3) & all Shareholders are NRIs. will it affect anyways?
21 July 2015
Underwriting is very much different.
In the securities industry an underwriter is a company, usually an investment bank, that helps companies introduce their new securities to the market.
I\
It helps the company (who has issued shares to public) by subscribing to unsubscribed portion of such Issue.
In the securities industry an underwriter is a company, usually an investment bank, that helps companies introduce their new securities to the market.
I\
It helps the company (who has issued shares to public) by subscribing to unsubscribed portion of such Issue.
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21 July 2015
Thank you so much Pratik for clarifying.. Thanks once again!
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