Sec. 186 of co. act 2013
This query is : Resolved
mohit vaidya
(Querist)
22 April 2017
what is investment layer ? what is the meaning of maximum investment possible by 2 investment layer ? Please explain
Jatin Bajaj
(Expert)
25 April 2017
As per section186 of the companies act 2013, a company cannot make investment in more than two layers of subsidiary company. the aforsaid provisions are only applicable to investment companies and not manufacturing Company.
For example : ABC Ltd is having its subsidiary XYZ Pvt Ltd and XYZ Pvt Ltd has its subsidiary MYN Pvt. Ltd. So it can make investment only upto 2 layers and not beyond 2 layers.
For example : ABC Ltd is having its subsidiary XYZ Pvt Ltd and XYZ Pvt Ltd has its subsidiary MYN Pvt. Ltd. So it can make investment only upto 2 layers and not beyond 2 layers.
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