can anyone please explain me subsection 1 of 186 which says that the company shall not make investment through more than two layers of investment companies.
- does that mean that a company should not invest in a company which has two layers of investments??
or
-does that mean that a company should not invest in more than two companies??
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Section 186 - loan and investment by the company of the companies act
Replies (1)
Section 186(1) restricts "vertical" layering (investing through a chain of more than two investment companies), not "horizontal" diversification (investing in multiple different companies).
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