Query about investment made by kmp

Co Act 2013 341 views 2 replies

Dear professionals,

 

Please give me the suggestions on following situation:

 

A person, who is the Director in one company wants to make an investment by way of purchasing the shares of another company in which he is a Managing Director. And he wants to purchase a share in the name of his own and not on behalf of company in which he is a Director.

So, advise me whether it is necessary to take approval of the first mentioned company i.e. the company in which he is a Director ?

And which compliances he has to comply?

Replies (2)

It is not required to take consent/ permisssion from first mentioned company. But after purchase/ acquire of shares he has to give disclosure in form MBP-1 of section 184 (1) of the Companies Act, 2013.

Thanks sir


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