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Section 187 of CA 2013 : Section 187: Investments Of Company To Be Held In Its Own Name

The Companies Act, 2013

CHAPTER XII: MEETINGS OF BOARD AND ITS POWERS

Section 187: Investments Of Company To Be Held In Its Own Name

Explanation using examples

Imagine a company, XYZ Pvt. Ltd., decides to invest in shares of another company, ABC Corp. According to Section 187(1) of the Companies Act, 2013, XYZ Pvt. Ltd. must make and hold this investment in its own name. However, if