Dear members,
A pub. co. wants to invest in shares of private co.
Both the companies are not related in anyway. Can pub.co. invest in the issue of shares by pvt. co.?
Issue of shares are in premium.
Definition of pvt. co. says...
Sec3 (iii) : Prohibits public invitation to subscribe for shares/debentures. Probhibits invitation or acceptance of deposits from public.
As pvt. co. is not inviting the pub co to invest, can the pvt. co. issue shares to pub co. if pub. co so wants.
I think it cannot b taken as deposit too.
Pls ans.
CAclubindia
