Explanation

Ajay Kumar Maggidi (Manager - Finance & Accounts)   (2073 Points)

15 January 2015  

Dear Members.

I am unable to understand the following .Please explain following provisions with an example for each

This Section(187(2)) does not prevent a company:

(a)  from depositing with a bank, being a banker of the company, any shares or securities for the collection any dividend or interest payable thereon; or

(b) from depositing with, or transferring to, or holding in the name of a scheduled bank, being a bankers of the company, shares or securities, in order to facilitate the transfer thereof;

(c)  from depositing with or transferring to any shares or securities by way of security for the repayment of any loan advanced to the company or the performance of any obligation undertaken by it;

(d)  from holding investments in the name of depository when such investments are in the form of securities held by the company as a beneficial owner.

Thanks In Advance