section 43 A of Companies Act

This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

22 April 2010 A private limited company wants to purchase a share of limited company..... what is the limit of the amount to be investe. till it doesnot loose the sytatus of private company?

Ankur Garg

Ankur Garg (Expert)
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08 May 2010 Section 43A is redundant now.

If u purchase 90% shares of public then also a private company remains a private company.

For inter- corporate investment section 372A is applicable. But this section is not applicable to a private company.

So by passing a board resolution you may go ahead.

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