Investment limits by company boards restrict inter-corporate share acquisitions without prior central approval when aggregate investments exceed statutory thresholds. Rule 11C prescribes that a board may invest in another body corporate only up to a specified proportion of that body's subscribed equity or aggregate paid-up capital, with group investments aggregated with subsidiaries; the board's aggregate investments across other bodies corporate are capped in relation to the investing company's subscribed capital and free reserves and require prior Central Government approval to exceed those ceilings; a company in default on deposit repayment under section 58A is barred from investing under section 372 until the default is rectified.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Investment limits by company boards restrict inter-corporate share acquisitions without prior central approval when aggregate investments exceed statutory thresholds.
Rule 11C prescribes that a board may invest in another body corporate only up to a specified proportion of that body's subscribed equity or aggregate paid-up capital, with group investments aggregated with subsidiaries; the board's aggregate investments across other bodies corporate are capped in relation to the investing company's subscribed capital and free reserves and require prior Central Government approval to exceed those ceilings; a company in default on deposit repayment under section 58A is barred from investing under section 372 until the default is rectified.
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