372a

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Dear members,

There is one limited company which is investing in its associates companies (pvt ltd). Sec 372A says that beyond 60% of paidup capital and reserves or 100% of reserves, it has to take approval in general meeting.

Can a company invest in its associates unlimited provided it obtain approval in general meeting? or Will it be treated as NBFC?

Pls explain. Its urgent

Replies (1)

Dear Shridhi,

 

Investing more than the limit prescribed in 372a requires shareholder authorisation through a special resolution passed in a general meeting.

Such copy of special resolution shall be filed within 30days to ROC.


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