Section 372 A

Hi Robin, U can refer ICAI Final Corporate law material, or other corporate law books prescribed by various authors for CA final.... eg:Munish Bhandari or Jayaraman sirs notes for better clarity over the provisions............. All d best.................

Inter-corporate investment in shares 13.12 Restrictions are imposed on public companies limited by shares in respect of inter-corporate investment in shares in section 372A of the Act. No company shall acquire by subscripttion, purchase or otherwise securities including shares of any other body corporate exceeding 60% of its paid-up capital and free reserves or 100% of its free reserves, whichever is more, otherwise than with the unanimous resolution consented to by all the directors present at a Board meeting, with the prior approval of the public financial institutions where any term loan is subsisting and there is no default in repayment of loan instalments or payment of related interest. Any investment by a company in any other body corporate beyond the said limit requires previous authorization by a special resolution. In the event that a company has defaulted in the repayment of public deposits or payment of related interest under section 58A, no investment in the shares of any other body corporate is permitted so long as such default is subsisting.

plz clarify whtare the provisions abt investing in foreign Subsidiaries. 1) when investing for the first time while incorporating the co. 2) later on ivestements, once it is incoparated

hi ..
 

I would like to know if Sec 370A is applicable to government companies or not? This doubt arised because S.370 was not applicable to Gov Co.