banner_ad

SEC 372 A

Others 2211 views 2 replies

 


      Hi All


                 A Ltd  company acquires 1 st time entire ( 100% ) shares in B Ltd. Sec 372 A is applies

Replies (2)
it will depend on the paid up capital and free reserve position of A Ltd. , after this, as B Ltd. becomes wholly owned subsidiary of A ltd. so the loan/investments by A to B Ltd. will fall outside Sec. 372A
Yes, in this case Sec 372A will apply. Company has to obtain a uninamious approval at the board meeting and get the intercorporate investment approved at the first general meeting held after such appointment. However if aggregate of intercorporate loan,investment, guarantee and security and proposed investment is greater than higher of :-
1) 60%(Paid up capital + free reserves) or
2) 100% of free reserves
Then approval at general meeting has to be obtained by passing a Special Resolution.
It must be seen that company has not defaulted in repayment of any of its public deposits, otherwise it will first have to make that default good and then make such investment.
In future, for calculating aforesaid ceiling of investments, this particular investment will be ignored b'oz it will become 100% subsidiary of company.


CCI Pro

Leave a Reply

Your are not logged in . Please login to post replies

Click here to Login / Register  

Company
22 May 2026
U.S. Financial Reporting & Consolidation Manager

Karia Overseas

Ahmedabad

CA

View Details
Company
29 May 2026
Finance Head

Bhawar Sales Corporation

Chennai

Graduate (Any)

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
08 May 2026
CHARTERED ACCOUNTANT

SHAH LADHA AND ASSOCIATE

Ahmedabad

CA

View Details
Company
19 May 2026
Accountant

ca kunjan

Mumbai

CA Inter

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
27 May 2026
Audit Assitant

Virender K Gupta and Co

New Delhi

B.Com

View Details