i. Can ZEN Limited invest in the shares of itself? ii. Can ZEN Limited invest in the shares of TEN Limited?

Monjur Alahi

Study the following case and express your opinion:

ZEN Limited has some investible profits. Please guide Zen limited with respect to the following?

i. Can ZEN Limited invest in the shares of itself?

ii. Can ZEN Limited invest in the shares of TEN Limited?

iii. Justify your answers in (a) & (b) in one sentence only.


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Salim Ahmed Kawsar

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i. No, ZEN Limited cannot invest in the shares of itself.

ii. Yes, ZEN Limited can invest in the shares of TEN Limited.

iii. Justification:

ZEN limited being a legal person can be a member of another company TEN Limited. It cannot be a member of its own company as per the Companies act.

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