What to keep in mind
Confirm the investing company's existence, good standing, resolutions, powers and any required accounting documents, and organize how its shareholder rights will be exercised.
An employee's signature without sufficient authority can undermine the validity of the subscription.
Distinctions often confused
Proof that a corporate shareholder exists is not the same as proof that its representative can commit it.
Frequently asked questions
Can an SRL invest in another company?
Potentially, within the statutory restrictions governing the proposed structure.
Is the investor's bylaws document sufficient?
Not always. Registration certificates, resolutions, powers and further evidence may be required.
Informational content. It is not a substitute for professional advice.