Companies (Investment in Associated Companies or Associated Undertakings) Regulations, 2017
Legal basis
Section 512 read with clause (b) of sub-section (3) of Section 199
What it does
Sets the minimum disclosures required in the notice of general meeting for an investment decision (counterparty financials, terms, funding source, director interests), requires directors to certify due diligence, caps a members' approval at 12 months, sets valuation and rate-of-return conditions for equity/loan investments, and requires a permanent Register of Investments in Associated Companies/Undertakings. Contravention is punishable by a penalty of up to Rs. 5 million plus Rs. 100,000 per day for a continuing default. Repeals the 2012 regulations of the same name.