Inter-corporate investments must match available financial resources and specify target securities in resolutions. Companies must ensure inter corporate investments, loans, and guarantees are calibrated to available financial resources and avoid resolutions authorising amounts materially beyond net worth. Explanatory statements must specifically identify securities proposed for investment rather than seeking en bloc approvals, except that en bloc authorisation may be acceptable for guarantees if an annual aggregate amount is specified. Non compliance may invite government action.
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.
Inter-corporate investments must match available financial resources and specify target securities in resolutions.
Companies must ensure inter corporate investments, loans, and guarantees are calibrated to available financial resources and avoid resolutions authorising amounts materially beyond net worth. Explanatory statements must specifically identify securities proposed for investment rather than seeking en bloc approvals, except that en bloc authorisation may be acceptable for guarantees if an annual aggregate amount is specified. Non compliance may invite government action.
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