372a

Shridhi Jain (Company Secretary) (1678 Points)

30 August 2013  

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