New Company Registration

Company to hold investment in securities or properties

The whole investments made or owned by a company in any security, property or other asset shall be made. It is owned by it in its own name.

However, the company may keep any shares in its subsidiary company in the name of nominees of the company or any nominee. If it is mandatory, the total members of the subsidiary company is not decrease under the statutory bound.

The company is to deposit with or transfer to SBI or schedule bank. It is like depositing its securities in escrow with an escrow agent. The statutory prohibition is against holding investments in securities or properties in the name of another instead of holding them in its name.

Company to hold investment in securities or properties

The securities or shares are assigned by the company with in 6 months.

A company may keep investments in a depository name, such investments are in the form of securities are owned by the company as a beneficial owner. If its continuation of the above clause of any securities or shares is form by a company. The company is responsible to keep the register.

The name of the register is “Register of investments not held in its own name by the company”.

(a) It should contain the following particulars :

  • Date of the board resolution authorizing such investment.
  • Date of investment.
  • Name of the person or depository in whose name in the investment its held.
  • Address and E-mail id of person / depository in whose name the investment is held.
  • Company name or body corporate in which investment is made.
  • Class of securities.
  • Number of securities.
  • Client ID/DP no.
  • Face value of securities.
  • Paid up value of securities.
  • Cost of Acquisition.
  • Date of disposal.
  • Number of securities disposed of.
  • Sale consideration.
  • Balance securities left, if any.
  • Remarks, if any.

The company must enter in the file with the specific investments in shares or other securities of an advantageous is owned by the company. The company should also record the reasons for not holding the investments in its own name.

The company must enter in that register the above particulars in a chronological order.

The company also record third party’s name.

The entries in the register shall be validated by the company secretary of the firm or by other person authorized by the board for the intention.

The register should be kept at the company registration office.

The register should be keep always and it is should be kept by the company secretary of the firm. If the company is not having any secretary or director, then the board of directors can manage it.

For the purpose of authorizing the holding of shares or other securities or properties in someone else’s name instead of holding them in the name of  the company, there should be a resolution of the board of directors. For this purpose, therefore it is necessary to follow the usual procedures relating to calling and holding a meeting of the board of directors.

If a company differs, under the provisions of this section, the company to pay Rs.25,000 for their punishable amount.

We, Solubilis in Bangalore register all business kinds of business entities like Private Limited, Public Limited, One Person Company and LLP registration in Bangalore. We are one of the leading company registration consultants in Bangalore.

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