For a pvt ltd company is it necessary to comply with sec 292 of company act (i.e passing BR) if its main objective is investing.
Also whether 372A applicable
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SEC 292
Replies (3)
Hiii,
Yes, Section 292 of the Companies Act 1956 is required to be complied with even in the case of Pvt. Ltd. Company i.e. a Resolution is required to be passed at the Board meeting for investing the funds of the company.
as far as section 372A is concerned it is not applicable to Pvt. Ltd. company unless it is a subsidiary of a Public limited Company.
yeah...but wht abt the object clause,,,,, the company has one of the main object to be investing and earning from the proceeds.So each time when the company make investment has to pass resolution?
if it is trading in shares then no need to pass resolution it will be treated as current investments just like stock in trade.
if it is purchased for for retaining more than 3 months then it will be treated as long term investments and they have to comply with sec 292 and pass resolution before investing
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