Section 378ZL Investment in other companies, formation of subsidiaries etc
- Chapter
- XXIA · Producer Companies
- Amendments
- 1
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021378ZL. Investment in other companies, formation of subsidiaries etc.—
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(1) The general reserves of any Producer Company shall be invested to secure the highest returns available from approved securities, fixed deposits, units, bonds issued by the Government or co-operative or scheduled bank or in such other mode as may be prescribed.
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(2) Any Producer Company may, for promotion of its objectives acquire the shares of another Producer Company.
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(3) Any Producer Company may subscribe to the share capital of, or enter into any agreement or other arrangement, whether by way of formation of its subsidiary company, joint venture or in any other manner with any body corporate, for the purpose of promoting the objects of the Producer Company by special resolution in this behalf.
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(4) Any Producer Company, either by itself or together with its subsidiaries, may invest, by way of subscription, purchase or otherwise, shares in any other company, other than a Producer Company, specified under sub-section (2), or subscription of capital under sub-section (3), for an amount not exceeding thirty per cent. of the aggregate of its paid-up capital and free reserves:
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021Provided that a Producer Company may, by special resolution passed in its general meeting and with prior approval of the Central Government, invest in excess of the limits specified in this section.
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(5) All investments by a Producer Company may be made if such investments are consistent with the objects of the Producer Company.
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(6) The Board of a Producer Company may, with the previous approval of Members by a special resolution, dispose of any of its investments referred to in sub-sections (3) and (4).
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(7) Every Producer Company shall maintain a register containing particulars of all the investments, showing the names of the companies in which shares have been acquired, number and value of shares; the date of acquisition; and the manner and price at which any of the shares have been subsequently disposed of.
Inserted by Companies (Amendment) Act, 2020, s. 52, with effect from 11 February 2021(8) The register referred to in sub-section (7) shall be kept at the registered office of the Producer Company and the same shall be open to inspection by any MemberDefined in section 2(55): member, in relation to a company, means the subscriber to the memorandum entered in the register of members, every other person who agrees in writing to become a member and is entered in the register of members, and every person holding shares whose name is entered as a beneficial owner in depository records. who may take extracts therefrom.