Equity Investments – Compliance Requirements
of the puts some restrictions on in . It requires that when an investment is made, it should have prior approval of shareholders via a . For , passing of special resolution is however, not required.
As per , the special resolution should indicate nature, period of investment, amount, and its terms and conditions.
As per regulations of 2017 called , the statement annexed with the notice of special resolution sent to the members with the notice of AGM / EOGM, the company shall disclose various information in the statement annexed to the notice, pursuant to of the Act, of a general meeting called for considering investment decision under section 199 of the Act.
Click here to view these disclosures.