A Ltd purchased lands in the name of the Director who held more than 75 percent of all shares of the...........

Companies Act-Phase (I & II) Board-powersandMeetings

A. Ltd purchased lands in the name of the Director who held more than 75 percent of all shares of the Company. The Company virtually belongs to the Director and so the property is held in name of the Director, but bought and paid for by the Company. One member objected to this. What is the position of the Companies Act, 2013 on this issue?

The Company can hold land property in name of any other person without restriction

The company can hold all securities in any other persons name, but land property is prohibited

The company can neither hold land property or securities in any other persons name

The Company can hold all forms of assets in the name of its Executive Directors

छोटे Courses बड़े Results

Master Board-powersandMeetings

Prepare through Micro-courses

Try Now

Explanation:

According to Sec 187. Investments of company to be held in its own name

(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 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.