Advice on the following with reference to the provisions of the Companies Act, 2013: (ii) Amar, a director in Sunrise Ltd. which is a subsidiary of Victory Ltd., wants to acquire certain secondhand machineries from the c

Alternative I Section 192(1) of the Companies Act, 2013, permits a company to enter into an arrangement and acquires or is to acquire assets for consideration other than cash after following the procedure given in the section. Accordingly, the company in this case can proceed with the deal by passing a resolution in company's general meeting and by following the procedure provided in this section. Amar can acquire the machinery without any consideration. Alternative II Amar, director in Sunrise limited, cannot acquire machineries from the company without any consideration as under this section, only consideration other than cash is permissible.