Companies act
This query is : Open
12 December 2012
can a Public Limited Company invest in shares of outside india Company and in this case Indian co. want to represent one of its director for investment on behalf of company? is there any comliance under Companies act and also provide a Board resolution for representing director on behalf of company.
14 December 2012
Inter corporate loans and investments are governed u/s 372A.
The company (in your case, the Indian Company),can invest in the foreign company to the extent of 60% of paid up capital and free reserves or 100% of free reserves, whichever is higher. If your company has already made such investments or granted loans to other companies or is acting as a guarantor for some other company, then the limit arrived at by applying 60% or 100% as the case may be, will be deducted by such sum as mentioned above. Further, approval of all the Directors is required for make such investment.
If the amount of investment exceeds the limits of 60% or 100%,then approval of the shareholders is required either at AGM or EOGM.
The company (in your case, the Indian Company),can invest in the foreign company to the extent of 60% of paid up capital and free reserves or 100% of free reserves, whichever is higher. If your company has already made such investments or granted loans to other companies or is acting as a guarantor for some other company, then the limit arrived at by applying 60% or 100% as the case may be, will be deducted by such sum as mentioned above. Further, approval of all the Directors is required for make such investment.
If the amount of investment exceeds the limits of 60% or 100%,then approval of the shareholders is required either at AGM or EOGM.
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- Applicability
- Is Aadhar PAN linking required for opening bank account?
- Where to show the RCM on Rent paid to unregistered landlord
- CPC Processing IT Return for AY 2023-24 without recognizing the Taxation Option under New Regime
- Application of 115BAC
- RCM - commercial rent paid to URP under GST
- Offsetting interest income against derivative trading losses
- TDS NUMBER SURRENDER
- GSTR-3B - Do I file nil when there is no sale but I've bought raw materials
- Legal heir raised refund , but refund issued to the closed account of deceased.
- Whether still royalty
- 20% OF DEMAND PAYMENT IN APPEAL
- Issue of gst e invoice
- Interchangeable words in accounts
- Adjusted profit/Loss in the case of LLP and Pvt. Ltd.company
- How to adjusted advances given or receipt
- Foreign vendor without PAN unable to to register due to non receipt of OTP on foreign number ?
- 133(6) DIN INVALID format error - ->WHERE TO REPLY 133(6) notice?
- Query for dubts
- Regarding Resignation by Auditor from Pvt. Ltd.
Trending Online Classes
-
Excel Mastery Program
CA Rishabh Pugalia
CAclubindia
