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Shridhi Jain (Company Secretary)     30 August 2013

Shridhi Jain
Company Secretary 
 155 likes  1678 points

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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

Siddharth (Student)     30 August 2013

 7 likes  128 points

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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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