Investment in hedge equity -186 applicability

Sec 186 applies for intercorporate loans and investments. In your case since you have said that your company has invested in shares. It means Your company has invested the funds of the company which will not attract Section 186. But file eform MGT-14 within 30 days from the date of passing of board resolution[Sec 179(3)(e)]

Why investment in shares of Other company doesn't fall under scope of sec.186.

What are consequences if company fails to pass resolution & File Mgt -14.

Please clarify the following:-

Is your company investing in other company's shares thorugh Hedge Equity as stock broker or Investing the money in Hedge Equity?

Our company is IT software support company (A P Ltd Co)-

Invested its surplus fund-All Directors agreed to invest co's fund Hedge equity.

What all are requirements fo complied under Co Act,2013.

Whether Objective clause of MoA to Altered,Mgt-14 filing,Resolution requirement.

Section 186 applies only when your company invests more than 60% of the Paid Up Share Capital and Free Reserves and Securities Premimum Account or 100% of its free reserves and securities premium account whichever is more in other company.

If your company doesn't fall in the above category. Then file eform MGT-14 only within 30 days from the date of passing of board resolution[Sec 179(3)(e)]

 

Company has invested more than specified limit.

No resolution has been passed till date.

Investments in shares is not stated in MoA.

What are steps to taken by company for clearing the issue.