Pavithra
(Student CA Final )
(69 Points)
Replied 18 March 2016
Hi Anitha,
I don't think so. Company's objective can be investing in some comapnies like Mutual funds but not to invest in a single company. Sorry if I am wrong..
Amit Kanunga
(Article Assistant and Post Gradute)
(644 Points)
Replied 18 March 2016
I support to the answer of Pavitha,
hence the company can be formed for Investment Only but cant invest in Single Company else the Object of the company will get something diffrent like Take Over....
Got my Point Anitha ?
lokeshkumaar
(student)
(77 Points)
Replied 18 March 2016
Amit Kanunga
(Article Assistant and Post Gradute)
(644 Points)
Replied 18 March 2016
| Originally posted by : lokeshkumaar | ||
 |
A company cannot be formed just to invest in another company. But please refer |  |
In didnt undertsood ur question ?
Vivek Bhasin
(GM (Accts and Admin))
(78 Points)
Replied 18 March 2016
CA Gunjan Shingavi
(Profession)
(110 Points)
Replied 19 March 2016
Amit Kanunga
(Article Assistant and Post Gradute)
(644 Points)
Replied 19 March 2016
But intension can not be that to be investment should be in SINGLE company then it could violate the laws.
The Company can be formed with the OBJECT to be INVESTMENT in MULTI company.
Anitha
(Articles)
(121 Points)
Replied 22 March 2016
Hi,
It seems Company can invest since no provisions in Companies Act restricts it.
I referred some sirs, they also told company can invest since there is no restriction.
But i am searching for some valid provision or sec to state the same
Anitha
(Articles)
(121 Points)
Replied 22 March 2016
Hi ,
No section restricts it.
But need to prepare note stating the fact.
Anitha
(Articles)
(121 Points)
Replied 22 March 2016
| Originally posted by : Vivek Bhasin | ||
|
Why not. Which provision stops one | |
HI Sir,
Can the company can be formed as SPV? kindly clarify
Anitha
(Articles)
(121 Points)
Replied 22 March 2016
Hi Amit,
It means object clause should state many company , but comapny can invest in only one company in practicle?
Anitha
(Articles)
(121 Points)
Replied 22 March 2016
Hi friends,
The situtaion here is,
Existing Company is not able to regularise their capital. Till now no share certificate have been issued.
To regularise it properly, they decided to repay all .
And then new company to be formed with obj to invest in that existing company
The same shareholders who will be repaid by existing company will invest in new company and the process of allocation will be taken over properly from now.
New company inturn will invest in new company( after receiveing capital).
Here the business of the company is to collect capital and invest in existing one.
No other operation is going to taken place.
IS It Possible to form new company as above?
IS SPV can be formed to carry on this process?
CAclubindia
