Investment in Associated Companies

When we talk of investmentview definition in associated companiesview definition or any of the associated undertakingsview definition, the main section which is attracted is section 199view the section of the Companies Act, 2017Download from SECP official site.  The types of investments covered in that section can be categorized under the following heads as per definition of investment given under section 199 :

• Equity investmentsSee compliance requirements
• Loans or advances 
• Guarantees
• Amount due as normal trade credit, where the terms and conditions of trade transaction(s) carried out are on non-arms-length basis and not in accordance with the trade policy of the company.

The compliance requirements and conditions for each category are given in this web compilation.  You can view these by clicking any of the above categories.