The Companies Act, 1956
373. Investments made before commencement of Act
Where any investments have been made by a company 1[in any other body corporate in the same group] at any time after the first day of April, 1952, which, if section 372 had been then in force, could not have been made except on the authority of a resolution passed by the investing company and the approval of the Central Government, the authority of the company by means of a resolution and the approval of the Central Government shall be obtained to such investments, within six months from the commencement of this Act; and if such authority and approval are not so obtained, the Board of directors of the company shall dispose of the investments, in so far as they may be in excess of the limits specified in subsection (2) of section 372 and 2[the second proviso to that sub-section], within two years from the commencement of this Act.
1. Inserted by Act 65 of 1960, sec. 39 (w.e.f. 28-12-1960).
2. Substituted by Act 65 of 1960, sec.139, for “the proviso to that sub-section” (w.e.f. 28-12-1960).