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Urgent question

402 views 2 replies

 

dear all
 
Kindly advise me on the following query
 
P ( a public ltd co.) wants to invest in the equity shares of L ( a pvt ltd co.) . Both are group companies. L has almost 17% equity shares lying unissued. Now the management has decided to acquire shares in L ltd. so what percentage of shares should P acquire and what factors should be kept in mind while deciding the consideration of Shares.( Both are unlisted companies)
Replies (2)

Hello,

 

As per my understanding u should chk the provisions of sec 297 and 301. Rest Percentage of shares depends on the management view. 

Consideration of shares is depend on the net worth of the company.

Others views if i missed out something then pl. share.

 

Regards

Nidhi

 

Check section 372A of the Companies Act, 1956.


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