TMI BlogPurchase by company of shares, etc., of other companies.X X X X Extracts X X X X X X X X Extracts X X X X ..... [3] [The Board of directors of the investing company shall be entitled to invest in any shares of any other body corporate up to such percentage of the subscribed equity share capital, or the aggregate of the paid-up equity and preference share capital, of such other body corporate, whichever is less, as may be prescribed:] Provided that the aggregate of the investments so made by the Board in all other bodies corporate shall not exceed [4] [such percentage of the aggregate of the subscribed capital and free reserves of the investing company, as may be prescribed:] Provided further that the aggregate of the investments made in all other bodies corporate in the same group shall not exceed [5] [such percentage of the aggre ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the aforesaid percentages, all existing investments, if any, made in rights shares up to that time shall be included in the aggregate of the investments of the company. (5) No investment shall be made by the Board of directors of an investing company in pursuance of sub-section (2), unless it is sanctioned by a resolution passed at a meeting of the Board with the consent of all the directors present at the meeting, except those not entitled to vote thereon, and unless further notice of the resolution to be moved at the meeting has been given to every director in the manner specified in section 286. (6) Every investing company shall keep a register of all investments made by it in shares of any other body or bodies corporate (whether i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (a) shall be open to inspection at such office, and (b) extracts may be taken therefrom and copies thereof may be required, by any member of the investing company to the same extent, in the same manner, and on the payment of the same fees as in the case of the register of members of the investing company; and the provisions of section 163 shall apply accordingly. (10) Every investing company shall annex in each balance sheet prepared by it after the commencement of the Companies (Amendment) Act, 1960 (65 of 1960), a statement showing the bodies corporate (indicating separately the bodies corporate in the same group) in the shares of which investments have been made by it (including all investments, whether existing or not, m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or advances to, or subscribing to the capital of, private industrial enterprises in India, in any case where the Central Govern ment has made or agreed to make to the company a special advance for the purpose or has guaranteed or agreed to guarantee the payment of moneys borrowed by the company from any institution outside India; [10] [(d) to investments by a holding company in its subsidiary, other than a sub sidiary within the meaning of clause (a) of sub-section (1) of section 4.] (e) [11] [* * *] [12] [(15) Nothing contained in this section shall apply to a company on and after the commencement of the Companies (Amendment) Act, 1999.] ---------------------------------------------- Notes:- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . [8] Redundant after abolition of the system of managing agent, secretaries and treasurers by Act 17 of 1969, w.e.f. 3-4-1970. [9] Inserted by the Companies (Amendment) Act, 1965, Act 31 of 1965, section 47, w.e.f. 15-10-1965. [10] Substituted by the Companies (Amendment) Act, 1988, section 51 w.e.f. 17-4-1989, for clause (d) which read as follows: "(d) to investments by a holding company in its subsidiary; or" [11] Redundant after abolition of the system of managing agent, secretaries and treasurers by Act 17 of 1969, w.e.f. 3-4-1970. [12] Inserted by the Companies (Amendment) Act, 1999, w.r.e.f. 31-10-1998. - - statute, statutory provisions legislation, law, enactment, Acts, Rules, Regulations, Taxation Tax Managem ..... X X X X Extracts X X X X X X X X Extracts X X X X
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