Investment by Sec. 25 Co.

Preeti Jain (Company Secretary) (139 Points)

13 December 2010

Dear All,

Can anyone put light on the matter that whether Section 25 Company can hold share in any other company?

Thanks in advance.

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5 Replies

Ajay Mishra (Company Secretary) (74337 Points)
Replied 13 December 2010

There is no such restriction on section 25 company on becoming member of another company.

Regards

Syam kamal (Company Secretary) (156 Points)
Replied 13 December 2010

Originally posted by : Ajay Mishra

Hi

There is no such restriction on section 25 company on becoming member of another company.

Regards

Yes… Agree with the learned member

Preeti Jain (Company Secretary) (139 Points)
Replied 13 December 2010

Thanks to both Ajay sir and Syam sir.

Please also tell me if there is any restriction on shareholding by other company in Section 25 Company.

Syam kamal (Company Secretary) (156 Points)
Replied 13 December 2010

There is no such restriction according to me.

But provision of Section 372A of the Companies Act, 1956 should be kept in mind so far it relates to inter corporate loans and investments

Awaiting for other responses

Preeti Jain (Company Secretary) (139 Points)
Replied 14 December 2010

Thanks again for your helpful reply.

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