Invest public limited company profits?

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25 Points Posted on 01 April 2021

Can a public limited company buy residential property with its profits and rent it out if it is not in real estate business?

 

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On 01 April 2021 at 00:12 Report
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This discussion explores whether a public limited company, not primarily in real estate, can use its profits to purchase and rent out residential properties. The consensus is that such an investment is possible with board of directors' approval, though it's advisable to have this explicitly stated in the company's Memorandum of Association (MOA).

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Practising CA
5649 Points Posted on 01 April 2021
Any company can do if such decision is agreed upon by board of directors even though not mentioned in the MOA specifically.
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On 01 April 2021 at 00:38
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Partner
855 Points Posted on 02 April 2021

Better to include in MOA.

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On 02 April 2021 at 00:26

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