Invetsment in mutual funds

This query is : Resolved

Gargi Ranade (Querist)
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21 January 2013 Dear All,

I am working with Pvt. Ltd. co. which is 100% subsidiary of the Foreign company, for the first time we are planning to invest company's surplus funds inthe Mutual Funds.

Our article in the management of the affairs of the Company, bestows all possible power in the hands of the Board of Director which are allowed by the any applicable Act.

what is the secretarial procedure for investing the surplus funds in the Mutual Funds. Which are all the sections , which should be looked after before making such investment.

Regards,

Gargi

CS Suraj Arora

CS Suraj Arora (Expert)
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29 January 2013 Dear Gargi,

So far as Investment of Surplus funds of the Company is concerned there is specific provision in the Companies Act i.e.292(1)(d) and sub section 3 of the above said Section . Therefore you should consider the same.

Thanks & Regards
Suraj Arora