26 July 2010
Can a company can become the member in another company? if yes what are the pre-requistes for a company to obtain shares in other company? any resulutions is required?.
03 August 2024
Limit to Invest in Other Companies Regulatory Limits: No Absolute Limit: The Companies Act, 2013 does not prescribe an absolute limit on the amount a company can invest in another company. However, it sets out certain conditions and procedures for such investments. Investment Limits in Specific Cases: For Subsidiaries: Investment limits and conditions may apply if the investing company is acquiring shares in a subsidiary or associate company. These are typically governed by specific provisions within the Companies Act. For Listed Companies: Publicly listed companies must comply with SEBI regulations regarding investments in other companies, including disclosures and limits on cross-holdings. Disclosure Requirements: Financial Statements: Investments in other companies must be disclosed in the investing company's financial statements. Annual Returns: Companies must report significant investments in their annual returns filed with the Registrar of Companies (RoC).