Acquisition of business

A Company can form a subsidiary by way of investing in the shares or purchasing the more than 50% of shares in that Company and consequent to this that Company becomes subsidiary of your Company u/s 4 of the Companies Act, 1956. Now you may use the following resolution.

“RESOLVED THAT the Board of Directors of the Company be and are hereby authorised to invest in equity shares of _________ Private Limited to the tune of _______ equity shares of Rs. 10/- each amounting to Rs. ______/- (Rupees ____ Only).

RESOVLED FURTHER THAT Mr. _____, Chairman & Managing Director be and is hereby authorised to do all necessary deeds required in this regard.”

Thanks satheesh