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of <h1>Company Exceeds 30% Investment Cap; Section 372 Excludes Subsidiary Investments, Rules Company Law Board After Legal Consultation.</h1> A recent case involved a company exceeding the 30% limit on inter-corporate investments without obtaining approval under section 372. The company argued that investments in its subsidiaries and managed companies should be excluded from this calculation, thus keeping the investment within permissible limits. The Company Law Board, after consulting with the Ministry of Law, clarified that investments listed under sub-section (14) of section 372 are excluded from the limits in sub-section (2). This means investments by a holding company in its subsidiaries or by managing agents in managed companies are not subject to the 30% limit.
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