Section 180 of ca 2013

Khushboo Maheshwari (Company Secretary) (548 Points)

19 February 2014  

There is a query, would request you to please address it.


"A" Company had been awarded two projects. In the Board of A Compnay it was decided that these 2 projects will be taken in a new SPV and accordingly a new wholly owned subsidiary was incorporated “B Limited”. Now the 2 projects will be transferred to this B Limited. Will it amount to sell or otherwise dispose off of an undertaking in A Limited as per section 180 of Companies Act, 2013 and do we need to take approval of Shareholders in the EGM for this? (A Limited right now has a negative networth)