[aaykarbhavan] SEC 185 OF CO. LAW

Dear Members,

 

185(1): Save as otherwise provided in this Act, no company shall:

ü   directly or indirectly

ü  advance any loan (including any loan represented by a book debt)

ü  To:

     a.  any of its directors or

     b. to any other person in whom the director is interested or

    c.   give any guarantee or

    d. provide any security in connection with any loan taken by him or such other person

 

In the proviso to this sub-section, 2 exceptions have been provided:

   The first one is:

(a) the giving of any loan to a managing or whole-time        director:-

   (i) as a part of the conditions of service extended by the  company to all its employees; or

   (ii) pursuant to any scheme approved by the members by  a special resolution;

 

Foll. Is the query on sec 185.

 

Can a pvt. Ltd. Co. give loan to its directors(MD, Independent, whole time, etc.) using the above exception?

 

What if already loan is given to director. Till what time can it be taken back.

 

 

Regards,

CA. Pramod Parmar

PARMAR & CO.

Chartered Accountants

Mumbai   *   Jaipur

www.parmarca.com

 

 

__._,_.___

receive alert on mobile, subscribe to SMS Channel named "aaykarbhavan"
[COST FREE]
SEND "on aaykarbhavan" TO 9870807070 FROM YOUR MOBILE.

To receive the mails from this group send message to aaykarbhavan-subscribe@yahoogroups.com

Visit Your Group

• New Members 1

• Privacy • Unsubscribe • Terms of Use