Investments of company to be held in its own name

 (1) All investments made or held by a company in any property, security or other asset shall be made and held by it in its own name:

Provided that the company may hold any shares in its subsidiary company in the name of any nominee or nominees of the company, if it is necessary to do so, to ensure that the number of members of the subsidiary company is not reduced below the statutory limit.

(2) Nothing in this section shall be deemed to prevent a company—

(a)   from depositing with a bank, being the bankers of the company, any shares or securities for the collection of any dividend or interest payable thereon; or
(b)   from depositing with, or transferring to, or holding in the name of, the State Bank of India or a scheduled bank, being the bankers of the company, shares or securities, in order to facilitate the transfer thereof:
    Provided that if within a period of six months from the date on which the shares or securities are transferred by the company to, or are first held by the company in the name of, the State Bank of India or a scheduled bank as aforesaid, no transfer of such shares or securities takes place, the company shall, as soon as practicable after the expiry of that period, have the shares or securities re-transferred to it from the State Bank of India or the scheduled bank or, as the case may be, again hold the shares or securities in its own name; or
(c)   from depositing with, or transferring to, any person any shares or securities, by way of security for the repayment of any loan advanced to the company or the performance of any obligation undertaken by it;
(d)   from holding investments in the name of a depository when such investments are in the form of securities held by the company as a beneficial owner.

(3) Where in pursuance of clause (d) of sub-section (2), any shares or securities in which investments have been made by a company are not held by it in its own name, the company shall maintain a register which shall contain such particulars as may be prescribed and such register shall be open to inspection by any member or debenture-holder of the company without any charge during business hours subject to such reasonable restrictions as the company may by its articles or in general meeting impose.

 

[(4) If a company is in default in complying with the provisions of this section, the company shall be liable to a penalty of five lakh rupees and every officer of the company who is in default shall be liable to a penalty of fifty thousand rupees.]
What We Do

Our Services

Direct Taxes

All areas of taxation : Personal Tax, Corporate Tax. | Suggesting legal structure of business entities. | Transactional advisory - optimal deal structure | T

Indirect Taxes

Advising client on establishment of indirect tax management system, in all areas i.e. GST Audit, Customs, Foreign Trade P

Auditing and Assurance Service

We are blessed with team of qualified chartered accountants highly efficient in auditing and assurance services. Our wide range of services are aimed for financial sta

Accounting Services

We offer highly efficient accounting services which are provided by us for our local, national and international clients. We also offer design, implementation and revi

Societies and Trust Consultanc

We are engaged in providing societies and trust consultancy to our clients. Our wide range of services include formation, registration U/s

Company Law Matters Consultanc

Every company according to the India law need to register with the registrar of companies and it is also necessary with documents for vari

CONSULTATION

Client Login

CONSULTATION

ASK A QUERY

verification image, type it in the box Refresh Captcha